AI Industrial Policy & Geopolitics

AI standards are the only realistic truce in the US-China AI race Rivals may not trust each other, but they can still agree on basic safety rules Without shared standards, AI competition will become more costly, fragmented, and dangerous

Shanghai’s single AI cluster outpaces United States’ scattered hubs. Talent gravity widens innovation and wage gaps. Focus investment, cushion workers. In July 2025, Shanghai caught the attention of global policymakers when the

Federal AI spending alone no longer secures United States dominance after decades of relative decline. China is sprinting ahead as AI-driven “super-human” productivity makes vast swathes of labour redundant. Research budgets must be tied to strong worker protections to win the tech race without fracturing society.

The Anthropic–OpenAI shift exposes flaws in Pentagon AI procurement Replacing an AI model triggers deep operational and institutional disruption Procurement reform is needed to balance speed, ethics, and security The pivot

AI chip export controls are tools of geopolitical leverage, not just technology denial China’s pragmatic strategy limits the long-term impact of chip restrictions Effective AI chip export controls must tie semiconductor access to strategic conditions

The third AI stack is a political ambition, not an industrial reality China’s open-source push wins users, not hardware supremacy Europe and Korea must focus on interoperability and skills, not full-stack rivalry Between Augu

AI is triggering a new global divergence, much like the industrial revolutions before it Countries that control AI systems and skills will gain lasting economic and institutional power Education and policy now decide who leads and who is left behind

Export controls slow foes, not secure leadership Invest in compute, clean power, talent Make NAIRR-style Compute Commons permanent U.S. data centers used about 183 terawatt-hours of electricity in 2024, roughly 4% of total U.S.

Defense AI education is the bottleneck between record defense spending and real capability Train stack-aware teams with mission credentials Scale safely with oversight and shared compute In 2024, global military spendi

Sovereign AI is public infrastructure for education Countries blend open models and public compute to localize and cut dependence Schools need shared data, transparent tests, and energy-smart procurement In late 2025, South Korea annou

Treat compute and clean power as strategic infrastructure for national security. Crowd in private capital with compute purchase agreements, capacity credits, and loan guarantees Tie support to open access, safety standards, and allied coordination as China accelerates

Build a third AI stack for education Adopt an Airbus-style consortium for procurement Prioritize teacher time-savings, multilingual access, and audited safety A single number highlights the stakes: in 2024, Airbus

Bootcamps produce tool users, not frontier researchers ASEAN needs a scientist-first AI talent strategy Fund PhDs, labs, and compute to invent, not import The statistic that should jolt us awake is simple: almost 40% of jobs

Europe’s schools rely on foreign AI infrastructure, creating vulnerability A neutral European stack with local compute and governance can secure continuity This ensures resilient, interoperable education under global tensions

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