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AI Giants Urge U.S. to Strengthen Infrastructure and Exports

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Top executives from major U.S. AI companies, including OpenAI, Microsoft (MSFT.O), and Advanced Micro Devices (AMD.O), testified at a U.S. Senate hearing on Thursday, stressing the importance of boosting infrastructure and championing AI chip exports to maintain the U.S.’s competitive edge over China in the artificial intelligence race.

Focus on Infrastructure and Export Restrictions

The U.S. Senate Commerce Committee, led by Senator Ted Cruz, discussed the need to cut regulatory barriers to advance AI development in the U.S. This discussion came after China’s DeepSeek made waves by unveiling a powerful, affordable AI model, and Huawei revealed an advanced AI chip, both of which are viewed as threats to U.S. leadership in AI technology.

Brad Smith, President of Microsoft, emphasized that the U.S. must ensure that its AI technology is broadly adopted worldwide to maintain its competitive advantage over China. He noted the lessons learned from the Huawei and 5G debacle, where early adoption had a lasting impact, and said, “Whoever gets there first will be difficult to supplant.” Smith also highlighted that concerns about Chinese propaganda and data flows had prompted Microsoft to restrict its employees from using DeepSeek.

Investment in AI Infrastructure and Research

Sam Altman, CEO of OpenAI, and Lisa Su, CEO of AMD, also spoke during the hearing, with Altman stressing the importance of investing in infrastructure to accelerate societal advances from AI. This includes expanding data centers, building more servers, and improving power stations to support the energy-intensive calculations required for AI operations.

Lisa Su emphasized the need for more education on AI, specifically to speed up adoption and provide the necessary training to increase the number of skilled workers, such as electricians, required to support the industry’s growth.

China’s DeepSeek Disrupts the AI Landscape

DeepSeek, a Chinese AI startup based in Hangzhou, surprised the global market with its affordable yet powerful AI model, competing with industry leaders like OpenAI and Meta Platforms (META.O). This move is seen as a challenge to U.S. companies, especially as China continues to make strides in AI technology despite the U.S.’s efforts to curb its access to American-made AI chips. U.S. officials have raised concerns that China could use AI to enhance its military capabilities.

The Trump administration has followed a similar approach to its predecessor, imposing new licensing requirements on shipments of AI chips to China from companies like Nvidia (NVDA.O) and AMD. However, the administration also plans to reverse certain export restrictions set by the Biden administration, which would have impacted the ability of U.S. tech companies to sell AI products globally.

Regulatory Changes and Future Outlook

Senator Cruz applauded the decision to revise AI chip export restrictions, stating that the previous rules would have crippled U.S. companies’ ability to compete on the global stage. He and other executives at the hearing expressed optimism about the potential for the U.S. to continue leading in AI, provided that the necessary investments and policy changes are made to support the sector’s growth.

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