Baidu chip unit reported at $2B valuation; China dominates AI, report finds

The National Security Commission on Artificial Intelligence (NSCAI) recently issued a 756-page report to the United States government warning that “America is not prepared to defend or compete in the AI era.” The commission stated that the government was not ready to confront the potential of AI technology and sophisticated cyber weapons China could create.

The report described areas of development necessary to make progress comparable to China’s achievements. The NSCAI suggested ways to recruit digital talent into the government and boost domestic microelectronic manufacturing, diminishing U.S. reliance on foreign-made electronics. The committee urged the U.S. government to pay close attention to foreign investment in American technology and to double the country’s AI research and development budget to $32 billion a year.

This AI gap did not happen by chance; it was a goal the Chinese government set out to achieve.