The US could lose the AI competition to China by exporting its greatest asset: its ability to attract the world's best and brightest. (Image credit: blackdovfx/Getty Images)
The recent launch of DeepSeek has shaken up markets and has become something of a Sputnik for the United States. The revelation that China’s artificial intelligence (AI) model has achieved comparable or even better results than leading AI models in Silicon Valley has forced the United States to confront the harsh reality that it was not sure it would remain the leader in this race.
In response, the Trump administration is considering even stricter export restrictions and a ban on DeepSeek on government devices, while OpenAI has accused DeepSeek of illegally copying ChatGPT. The current policy strategy appears to be aimed at curbing China’s AI capabilities, but may backfire.
Akhil Bhardwaj is Associate Professor of Strategy and Organization at the University of Bath, UK. His research covers extreme events ranging from organizational disasters to radical innovations.
The United States and China represent fundamentally different paradigms of thought, which are reflected in their formal and informal institutional structures. In general, the United States protects and ensures individual freedom, while China values collective interests.
These differences seem to disappear in business, but they point to different approaches.
Each of these paradigms seeks global dominance. The United States has attempted to “export” democracy since the end of World War II, much to the dismay of the Soviet Union, which also sought to spread communism and expand its sphere of influence. After the collapse of communism in the late 20th century, the world briefly became unipolar, with the United States as the sole superpower.
However, this dominance is no longer taken for granted. China is keen to take this position and believes that advances in AI are the right path, so it has been investing heavily in the sector over the past decade.
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