Feb 7, 2023

American Tech Is Funding Chinese A.I. Businesses

Tech giants are investing in Chinese A.I. as tensions rise between China and the United States.
American Tech Is Funding Chinese A.I. Businesses
Photo by Yan Ke / Unsplash

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What’s happening: Major U.S. tech businesses like Intel and Qualcomm have invested significant sums of money into Chinese artificial intelligence (A.I.) companies, according to a new report. Of the $110 billion raised by all A.I. companies in China, American investors account for $40.2 billion, or 37 percent.

All-time high tensions: Meanwhile, the tension between America and China continues to escalate. Just over the weekend, the United States shot down a Chinese surveillance balloon in U.S. airspace, prompting the Chinese government to label the response an “attack” and an “overreaction.” Plus, Air Mobility Command Gen. Mike Minihan suggested in a recently leaked memo that the U.S. will be at war with China over Taiwan within the next two years.

It goes both ways: Over the past few years, Chinese firms have been purchasing large plots of land in the U.S., specifically near American military bases. Republican governors in Florida, Texas, South Dakota, and Virginia have voiced their concerns over this issue and proposed legislation to limit or monitor Chinese real estate investments in their states.

Why it matters: As tensions escalate between the U.S. and China, the possibility of conflict over matters of trade, investment, or Taiwan increases. Artificial intelligence will likely play an integral role in future wars, and American investors may be funding the very Chinese technology that will be used against the U.S. in years to come.

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