The new arms race is for compute — and America can’t afford to fall behind. Compute is the fuel of the future, and whoever controls it will control artificial intelligence. As the world transitions from traditional resources like oil to data and computation, the U.S. is facing a critical challenge to maintain its technological edge. The strategic importance of compute mirrors historical shifts in power, emphasizing the necessity of a robust AI infrastructure to shape the next century’s global landscape.
According to recent reports, the United States must continue its investment in AI-related infrastructure to stay ahead. J.P. Morgan estimates that data-center spending alone could boost U.S. GDP by up to 20 basis points over the next two years. Similarly, The Economist highlights that investments tied to AI have accounted for 40% of America’s GDP growth in the past year, indicating a significant shift in economic dynamics. These figures underscore the economic and geopolitical implications of dominating the AI race, as the U.S. aims to maintain its competitive advantage against state-backed rivals, particularly China.
The concentration of AI-related growth is a new source of strategic leverage, reminiscent of the oil-driven power dynamics of the past. The U.S. currently holds an advantage that could determine whether democracies lead the AI revolution or cede it to state-controlled systems. However, the article stresses the urgency of immediate action, as state-backed rivals are actively working to develop their own AI stacks, potentially at the expense of democratic frameworks. The Trump administration’s AI Action Plan is a response to this challenge, focusing on faster data center construction, domestic semiconductor production, and alliances, but the effectiveness of these measures remains to be seen.
Exporting the American AI stack is another critical strategy to reinforce American leadership globally. By sharing the U.S. AI infrastructure and technologies, the nation can foster stronger alliances and support a new wave of economic growth. This includes not only the export of servers and data centers but also the support of U.S. manufacturing, energy, and services. Furthermore, the benefits of such exports would resonate domestically, contributing to the U.S. economy and helping to address national debt challenges.
The article concludes by emphasizing that the control of compute will ultimately define the terms of the next century. The U.S. has the potential to lead the AI revolution under principles of openness and fairness, but this requires decisive action and sustained investment. As the world waits for the next major player to emerge, the U.S. must act swiftly and strategically to ensure that it remains at the forefront of the compute-driven future.