Ronan Wordsworth
In January, China took the tech world by surprise when it unveiled DeepSeek, an artificial intelligence company that has proved to be as competitive as any other but at a much lower cost. The event was a wake-up call to policy officials of all stripes in Washington, who understand that AI will soon affect, to some degree or another, all aspects of political life.
Dominance in this field requires massive computing power, a big enough energy supply to power the vast data centers behind AI, and, finally, the human resources needed to develop new and innovative iterations. It’s little wonder, then, that governments are racing to finance the very infrastructure on which AI relies. Within days of the beginning of U.S. President Donald Trump’s second term, his administration announced the creation of an enterprise known as Stargate, which plans to invest $500 billion in private sector AI infrastructure. In February, ahead of a multinational AI summit in Paris, France announced investments totaling around $112 billion in AI infrastructure and development. This included $20 billion from Canadian investment firms for new AI projects, up to $50 billion from the United Arab Emirates for new data centres, and large investments in Mistral, a European competitor to OpenAI and DeepSeek. China already has a surplus of data centers, having constructed hundreds in the western provinces, while large tech firms such as ByteDance are investing billions in additional facilities.
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