In An AI Arms Race, The Whole World Loses

By Koohan Paik-Mander, Foreign Policy In Focus

A longstanding Sinophobia in the U.S. goes back to the 19th century, with the Chinese Exclusion Act, the tax on Chinese miners during the Gold Rush, and the exclusion from being able to testify in court.

Evidence of this entrenched history lingers today, in the trade sanctions against China, belligerent rhetoric from both Republicans and Democrats that led to a rash of violence against elderly Asian-Americans on American streets, as well as billions of dollars spent to fortify overseas bases in preparation for a U.S.-China war.

And the refusal to cooperate meaningfully with China on anything. As a result, the U.S. is thick in the midst of an AI arms race with China that is predicated on both nations’ dangerous faith in techno-salvation.

Thanks to the legacy of Sinophobia, it takes a whole lot to elicit an overwhelming embrace of China from average Americans, even if temporarily. But that’s what’s happened twice in the last month. The first time was the TikTok fiasco, when millions of distraught TikTok users had had their favorite platform snatched from them like a pacifier from a baby’s mouth. They found solace not in Meta nor X (as had been the plan), but rather, in the Chinese social media platform, Xiaohongshu, also known as “RedNote.”

The second instance was the debut of DeepSeek AI, which came on the heels of one of the most pompous pageants of delusional grandeur ever seen. It was Trump’s inauguration ceremony for his second term. Shortly thereafter, a press conference was held. Three tech oligarchs and the president bloviated about their Stargate AI project. It would cost $500 billion. That’s what they say is needed to stay ahead of the Chinese. (For some reason, the excuse of “staying ahead of the Chinese” seems to justify any astronomical expense.)

In the mean time, thousands of people have been left homeless due to wild fires in L.A., flooding in North Carolina, and even to this day, people from Lahaina, Maui are still without a place to call home. But none of these Americans got a press conference.

Instead, it was the oligarchs who took the stage. Oracle’s Larry Ellison, Masayoshi Son of Softbank, and Open AI founder Sam Altman described Stargate’s plans to build clusters of gigantic data centers across the country from sea to shining sea, each one bigger than any Walmart Superstore. It’s Manifest Destiny for data.