AI is not a technological revolution but a strategic element.

Artificial intelligence (AI) today is not just a technological revolution. It is also a strategic element. It is changing economic and geopolitical power balances. The technology race between the US and China is intense. It is opening the door to a new ‘AI Cold War’ era.

China made a sensational entry into the game with DeepSeek. DeepSeek emerged a few years ago as a university initiative based in Hangzhou. Upon its release, it caused leading US tech stocks to lose a trillion dollars in value. The reason: DeepSeek can achieve the same performance with fewer resources. In other words, it is much cheaper in terms of operating costs compared to its American rivals.

As an initial response, US tech giants raised issues such as ‘data security’ and ‘censorship.’ OpenAI then announced it would make a new AI application called o3-mini. It would be available for free as a counter to DeepSeek.

Although DeepSeek has been widely debated, it has definitely opened up a new agenda in the ‘cost-need-performance’ triangle. This issue seems poised to maintain its defining impact in the marketplace.

Economic Front

Artificial intelligence is expected to contribute $15.7 trillion to global GDP by 2030, making it an invaluable asset for economies.

The United States has taken the lead in this race, thanks to the tech giants of Silicon Valley. China, however, is closing the gap very rapidly through state-backed strategies. China’s “AI 2030” plan was shaped with the goal of making the country a global leader. Tech parks in Shenzhen and Beijing host AI investments from major Chinese companies. With its population of 1.4 billion, China accumulates massive data sets, providing an unparalleled resource to fuel machine learning models. The country’s “Smart Factories” project aims to generate an additional $600 billion in annual revenue through unmanned production lines.

Geopolitical Tensions

Under the “Belt and Road Initiative,” China has initiated smart city projects. These projects are part of a strategy to export AI technologies to Africa. They also aim to extend these technologies to Asia. In response, the US is trying to build “trusted” digital infrastructures in Pacific countries. They aim to do this through projects like the “Blue Dot Network.”

Semiconductor manufacturing and chip technologies are the most critical components of this competition. The US imposes strict limitations on the export of AI chips. It allows unrestricted chip exports to 18 countries designated as allies. This makes it almost impossible for other nations to access these chips. Let us note in passing that Turkey is not among these 18 countries classified as US allies.

Meanwhile, TSMC is one of the world’s largest semiconductor manufacturers. Its location in Taiwan makes the Taiwan issue one of the most heated topics in global politics.

Another important matter is that the West debates the ethical use of AI. Meanwhile, China uses state-controlled algorithms to shape citizen behavior. They do this through applications like the social credit system. This contrast provides clues about how technology may become divided between democratic and authoritarian models.

The risk of the competition spinning out of control brings the possibility of technological fragmentation and cyber warfare. Just imagine if AI-based cyberattacks were to cripple critical infrastructures such as security. Consider the impact on healthcare and the chaos that would ensue.

In Conclusion

Artificial intelligence is redrawing the economic, social, and political framework of the 21st century. This field has a far deeper and broader impact than even the US–USSR space race during the Cold War.

It may appear to be merely a leadership contest between the US and China. In reality, it entails a far more complex, multi-layered power balance. The EU is contributing through regulatory efforts. India provides a vast software talent pool. Japan and South Korea offer an advanced technology heritage. The rise of independent open-source communities is also significant. These factors are carrying the ‘AI Cold War’ scenario beyond just two countries.

Still, the struggle between the biggest players, the US and China, will decide which country gains technological superiority. It will also highlight the difference between democratic values and authoritarian approaches about data privacy and individual rights.

AI has the potential to transform every layer of society, from healthcare to education. Therefore, establishing global ethical standards is of utmost importance.

In a high-tech world, peace is only possible with transparency. We must also adhere to standardization and engage in fair competition on a global scale. So, we should remember that the AI race winner will not be just one country. It will not be just one company. It is also the side that builds the healthiest system of values. This is a matter of historical significance.

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