China’s $300 billion for AI could turn Americans into AI traitors and destroy what’s left of the U.S. economy.
China is trying to outcompete the United States in artificial intelligence (AI) with a nearly $300 billion buildout of U.S. technology. China could win the race within the next two years if the United States fails to better control the semiconductor and large language model (LLM) tech used by AI.
Unless something is done, some of Beijing’s money, either from the $300 billion or from other funds devoted to AI, could be used to hire leading U.S. AI companies and researchers and to build AI data centers using stolen U.S. semiconductor tech. Simultaneously, Beijing is likely trying to stop AI in the United States by promoting U.S. public sentiment aimed at limiting AI development.
As AI grows in sophistication to the point of being able to undermine the cybersecurity of most major global corporations and governments, maintaining control of semiconductor technology and preventing the loss of leading LLM researchers is critical to U.S. national security and global prospects for democracy.
China’s tech theft, poaching, forced tech transfer of AI research, and distillation attacks are facilitated by both the cooperation of, and cyberespionage from, leading U.S. and international tech companies. Microsoft allegedly cooperates with China’s AI research. OpenAI and DeepMind have been the victims of China’s AI poaching.
The Chinese Communist Party’s (CCP’s) thieving approach to AI tech acquisition follows a playbook similar to its theft of semiconductor tech from TSMC in Taiwan and ASML in the Netherlands. China also steals from the United States through AI distillation attacks that allegedly use a Chinese company like DeepSeek to illegally distill the output of U.S. AI models.
Some AI companies are fighting back rather than trying to profit from China’s AI investments. Anthropic has warned of the dangers of China leading in AI by 2028. OpenAI has monitored China’s usage and closed accounts that allegedly use the company for malign influence campaigns in the United States.
Two campaigns were launched using OpenAI against U.S. data centers and tariffs meant to keep the United States as the global AI leader. Operatives, most likely Chinese government contractors according to OpenAI, used the service to produce comments and images, including comic strips.
The content promoted two ideas: “data center buildouts for AI were increasing electricity prices for average families” and criticism of “US tariffs as attempts to dominate technological competition.” The OpenAI-produced content was then posted on social media by batches of accounts posing as Americans, apparently to influence the United States to stop leading in AI and other tech. OpenAI banned the accounts, but this cannot stop Chinese operatives from repeating the tactic by opening new accounts.
The influence campaign amplified already-existing sentiment against data centers. Several states and municipalities have proposed legislation to freeze construction of the centers due to genuine public concerns. So a Chinese influence campaign could negatively impact U.S. AI competition, especially if it boosts anti-AI legislation at the national level.
While the dangers of AI are real, including a superintelligent AI going rogue, CCP domination of AI could be just as bad. So, the United States should consider tougher laws against China’s malign influence, including not only social media but also mainstream media it owns or funds with advertising dollars, as well as the influence it wields through U.S. corporate political campaign donations.
By Anders Corr
