US bets big on AI, risking future prosperity

United States technology giants are channeling over $350 billion annually into AI infrastructure, with forecasts suggesting this figure will surpass $400 billion by 2026. This substantial investment dwarfs China's estimated $100 billion, positioning the US for potential AI dominance. However, this concentrated focus on artificial intelligence may represent a risky gamble, potentially sacrificing broader economic pre-eminence for a singular bet on AI.

In contrast, China is spreading its investments across various future-oriented sectors. Beyond AI, significant capital is allocated to electric vehicles, battery technology, robotics, solar panels, and advanced manufacturing. These areas, while less glamorous than AI, offer more tangible and less speculative returns. China's approach prioritizes AI as a tool for industrial enhancement rather than an existential pursuit of superintelligence.

The article suggests that while the US chases Artificial General Intelligence (AGI) with a fervor bordering on obsession, this singular focus could be a strategic misstep. The uncertainty surrounding AI's ultimate utility and the potential for diminishing returns, coupled with a historical trend of technological progress leveling off, casts doubt on the long-term viability of the US's all-in strategy. China's diversified approach, including a greater reliance on open-source AI and substantial investments in clean energy, appears more prudent.