International AI Competition: A New Cold War?

In today’s landscape, a new cold war is unfolding, with artificial intelligence (AI) serving as the ultimate weapon. The stakes are arguably even higher as nations vie for dominance over a technology poised to transform our world.

International AI Competition: A New Cold War?
**Editor's note:** Akhil Gupta is the CEO of Total IT Global, specializing in IT infrastructure, artificial intelligence, and talent solutions. The following article presents the author's views and does not necessarily reflect the opinions of CN.

The Cold War of the 20th century was characterized by its nuclear weaponry. In contrast, a new cold war is emerging, centered on artificial intelligence, seen as the ultimate weapon in this modern struggle.

The risks involved are arguably more significant, as nations vie for dominance in a technology poised to transform the world.

**U.S. Leads the Charge in AI Supremacy**

The United States is at the forefront of the race for AI supremacy. Project Stargate, a vast private-sector initiative touted at $500 billion, is designed to ensure America's leadership in AI development and infrastructure.

Launched under U.S. President Donald Trump, Stargate is spearheaded by tech industry leaders such as OpenAI CEO Sam Altman, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son. The initiative aims to establish powerful data centers in Texas, centralizing AI infrastructure and serving as a hub for AI applications, including ChatGPT and others.

Additionally, the U.S. CHIPS and Science Act offers substantial funding for semiconductor development, which is crucial for AI progress.

Moreover, the U.S. has strategically enacted export controls to limit China's and other nations' access to advanced AI chips and manufacturing equipment, in an effort to impede their development.

**China: A Formidable Challenger**

China stands as the primary competitor to the U.S. in the realm of AI.

The country has set forth an ambitious New Generation Artificial Intelligence Development Plan aiming for global AI leadership by 2030.

With robust support from state-owned enterprises, China is investing heavily in AI research, chip manufacturing, and surveillance technologies.

One noteworthy advancement comes from DeepSeek, a Chinese AI lab that has developed a powerful open-source AI model for under $6 million, comparable to systems like GPT-4 and Llama.

The DeepSeek-R1 model is trained at a fraction of the cost and requires only one-tenth of the computing power compared to other models like OpenAI's GPT-4o.

Although not fully open-source due to data acquisition limitations, the release of "open-weight" models signifies meaningful progress.

DeepSeek's AI Assistant, powered by DeepSeek-V3, has surpassed ChatGPT to become the top-rated free application in the Apple App Store in the U.S.

Moreover, Alibaba's recently launched Qwen 2.5 AI model has outshined even DeepSeek V3 in various benchmark assessments.

**India: An Emerging AI Powerhouse**

The rapid announcements of advanced AI models from China have sparked inquiries in India about its own capabilities in foundational AI development.

IT Minister Ashwini Vaishnaw addressed this at a recent press event, discussing India's substantial investment in over 18,000 high-end GPUs, underscoring its commitment to creating robust computing facilities necessary for AI applications, model training, and algorithm development.

With global model computation costs ranging from $2.5 to $3 per hour, India's computation costs are projected to drop to under 100 rupees per hour after government subsidies, significantly easing entry for AI developers.

Additionally, India is hosting DeepSeek on local servers following extensive security checks, making the open-source code accessible to developers, coders, and researchers. The $1.25 billion IndiaAI mission is expected to further drive investments into AI startups and enhance the overall AI ecosystem.

**European Union's Ethical AI Leadership**

Though the EU may not lead in technological capability, it is paving the way in ensuring that AI adheres to human rights and ethical principles.

The Artificial Intelligence Act aims to regulate AI technologies, prioritizing responsible and ethical use in its implementation.

**Malaysia: The Rising Star of ASEAN**

As the ASEAN chair in 2025, Malaysia is positioning itself as a key influencer in the region's AI development landscape.

The country aims to be a digital innovation hub with the establishment of the National Artificial Intelligence Office (NAIO) to formulate its AI strategy. The NAIO's focus includes creating a code of ethics, a regulatory framework, and a long-term action plan for AI.

With the Budget 2025 facilitating incentives for tech firms, R&D, and talent cultivation, Malaysia's Digital Economy Corporation has already successfully onboarded 140 AI solution providers, generating RM1 billion in revenue.

The AI sector is projected to deliver substantial contributions to Malaysia's economy, with expectations that it will generate around $115 billion in productive capacity by 2030.

**Stakes In the AI Race: Who Will Write the Ultimate Code?**

The AI competition is not just a battle for technological superiority; it represents a struggle for influence and power.

AI's potential to reshape economies, military strategies, and global narratives cannot be overstated.

Unlike the definitive arms race of the past, the resolution of the AI race remains uncertain.

The pivotal question is not merely about who prevails but how this competition will shape our future.

Will it lead to unprecedented innovation and collaboration, or will it exacerbate existing rifts?

The AI race is currently underway, and its outcome will significantly define the course of the 21st century.

Debra A Smith contributed to this report for TROIB News