The great power competition has entered into the AI battleground for AI supremacy and is under big turns. Semiconductors (microchips) are the oil of the 21st century, and AI models are the modern tanks. In just a few years wars, their strategies, and tactics will be decided by superintelligent robots who will be the powerful weapons of the future. The two rivals of the century, the US and China, are engaged in competition in the field, not only for economic gains but also for AI dominance. AI is no longer just about automation and efficiency but also a critical tool in geopolitics, military strategy, and economic dominance. AI has become a national priority for both of the powers. There are two strategic ways to contain rival, including: imposing sanctions and increasing tariffs on relative material and competing through innovations and developments.

To maintain its dominance in technology, the US applied both of the strategies to its competitors. The US-China semiconductor tensions have intensified through escalating sanctions and countermeasures. Since 2022, the US has imposed strict export controls, restricting China’s access to advanced chip-making technology to curb its military and AI advancements. It also expanded its Entity List, blocking around 140 major Chinese tech firms (e.g., Huawei, SMIC, and Naura Technology etc) from acquiring critical US technologies. In retaliation, China imposed export bans on key materials like gallium and germanium, essential for semiconductor production. These moves have disrupted the global supply chain, pushing both nations to strengthen their domestic chip industries for self-reliance while fuelling broader geopolitical and economic competition.

China has made AI development a national priority, embedding it in its surveillance systems, economic planning, and military applications. According to a 2023 report by Tsinghua University, China’s AI industry grew by 40% annually, with investments exceeding $70 billion. The US, wary of losing its edge, is now accelerating efforts to maintain leadership in the AI domain. When it seemed that the US was leading the field, BANG! China had arrived with DeepSeek, trying to break all the schemes. On the other hand, the US is trying to secure its leadership in AI through its new private-sector, joint mega project of an ambitious AI infrastructure initiative, the Stargate. It was launched in January 2025. The major partners included OpenAI, SoftBank, Oracle, and MGX.

With an estimated investment of up to 500 billion USD, the Stargate Project represents one of the most significant AI infrastructure initiatives in history. The cost of the four-year project of Stargate is 500 billion USD, which is double the NASA Apollo Program which was around 280–320 billion USD in today’s money. The project shows that it will be entirely privately funded without burdening American taxpayers, but while Trump has made a bold move, the program will remain full of uncertainties. The plan includes the construction of advanced data centers across the US, with the first already underway in Abilene, Texas. Trump stated that Stargate will construct the “physical and virtual infrastructure to power the next generation of advancements in AI, and this will include the construction of colossal data centers.”These data hubs will supply the processing power required for next-generation AI models, reaffirming America’s leadership in AI research and innovation.

The Stargate project not only aims for US economic and technological progress but also is a strategic response to counter the Chinese technological development. Chinese investment in the integration of automated surveillance, biometric identification, and predictive policing in its governance raises concerns about digital authoritarianism, as many reports indicate that it monitors over 700 million citizens daily. The US focuses on driving AI innovation by working closely with private companies like OpenAI and NVIDIA, using their expertise to push technological advancements. Furthermore, in the last five years, it was noted that China had a lead in AI-generated patents that was around 2.5 times higher than the total of the US patents. Hence the point is, can the Stargate Project bridge this widening gap, or is it merely a symbolic move?

The Stargate Project represents a pivotal moment in the US-China technological rivalry, but its success is far from guaranteed. As both nations double down on AI investments, the global order is shifting towards an era where AI supremacy is as crucial as military power. The 500 billion USD leaves the question of whether the Stargate Project give the United States the strategic upper hand, or is merely the beginning of a prolonged AI arms race with uncertain outcomes?  Either way, the world is entering an age where AI dictates geopolitics as much as diplomacy and military force.