U.S.-China Tech Race Narrows: AI and Crypto Dominate New Battleground

As the competition between the U.S. and China over artificial intelligence and cryptocurrency intensifies, David Sacks, the White House’s advisor on AI and crypto policy, warned that the technological gap between the two countries is narrower than previously thought. Speaking at the AWS Summit in Washington, D.C., Sacks stated, “We used to think the U.S. was far ahead of China in AI and crypto technologies, but now the gap may be as little as three to six months.” He emphasized that China’s rapid progress is being driven by its large talent pool, noting that half of the world’s AI researchers are Chinese. He also pointed to Huawei’s self-developed AI chips as evidence of China closing in on U.S. capabilities.

This competition is also closely tied to the crypto industry. The U.S. government recently tightened export controls on Huawei’s AI chip, the “Ascend,” citing its potential use in crypto mining due to its powerful data processing capabilities. Sacks stressed that maintaining an 80% market share in AI chips is essential to preserve U.S. dominance not only in AI but also in crypto technology. However, Huawei founder Ren Zhengfei downplayed such concerns, stating in a state media interview that Huawei’s chips are still a generation behind those of the U.S. and that more effort is needed to catch up.

The controversy began when concerns arose that Huawei’s chips could be misused for cryptocurrency computations, prompting the U.S. government to impose strict restrictions. The U.S. Department of Commerce stated that any country using Ascend chips would be in violation of U.S. export controls. Since 2019, Huawei has been accelerating efforts to develop independent semiconductor technology to circumvent U.S. sanctions, a move that could reshape the global balance of power in both AI and crypto markets. As the U.S. and China engage in a fast-moving technology race, global attention is now focused on their next policy responses.

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