US and China build rival AI empires that extend geopolitical power
The essay argues that artificial intelligence has become an imperial technology, allowing the United States and China to extend their existing geopolitical influence. Both powers control the key inputs—large language models, advanced chips, data centers, and capital—that underpin frontier AI, turning the technology into a lever over global innovation, science, and culture.
Key points
- Beijing plans to spend $295 billion over five years on a nationwide AI data‑center grid, funded mainly by government bonds (Bloomberg June).
- US tech firms have committed more than $600 billion to AI‑related capital expenditure in 2026, largely via private credit markets.
- The United States paid roughly $881 billion in interest in 2024, exceeding its defense spending of about $874 billion.
China’s State Council set a 2030 AI leadership plan in 2017 and, according to a Bloomberg draft, now intends to spend $295 billion over five years on a state‑run data‑center network financed by long‑dated bonds. The United States relies on private‑sector finance; the largest tech firms have pledged more than $600 billion to AI‑related capital spending in 2026, funded largely through public and private credit markets. The fiscal strain is evident as the US paid roughly $881 billion in interest in 2024—exceeding its defense budget of about $874 billion—highlighting the growing “imperial trilemma” of funding, defense, and welfare.
The piece warns that the race for AI dominance could trigger financial crises, geopolitical splits over chips and models, and even security threats from autonomous AI agents, making the technology a decisive factor in future global power balances.
Model page: Kimi K3 →
The story so far
2 episodes →- US and China build rival AI empires that extend geopolitical powerthis story
How AI is an inherently imperial technology, and how the US and China are building rival "AI empires" with different approaches to extend their power
foreignaffairs.com · 22 October 2026
Loading the full article…
This text was published by foreignaffairs.com and written by Niall Ferguson. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
More in Policy & Regulation
All →- AI firms tell UK ministers they have 12 months to head off datacentre protests · 1 src
- Microsoft CEO Satya Nadella warns AI systems are becoming less trustworthy · 1 src
- Anthropic urges judge to deem lyric training fair use · 1 src
- OpenAI requires approval for model routers and AI gateways under new usage policy · 1 src
- Mark Zuckerberg agrees to stay in California after board deal on new shares · 1 src
Comments
via GitHub Discussions