Bessent Warns US Faces Dire Stakes if China Wins AI Race

Treasury Secretary Scott Bessent warned that the consequences of the US losing its edge in artificial intelligence to China would overshadow every other national priority, including defense spending. Speaking at a Washington event, he suggested that a Chinese lead in AI capabilities would leave little else that mattered, framing the technology race as an existential concern for US policy.

Comments Address Domestic Data Center Backlash

Bessent’s remarks appeared partly aimed at growing public opposition to large data center construction projects across the US, an issue President Trump has previously warned could hand China an advantage by slowing American infrastructure buildout. In China, similar projects are reportedly being built in less populated northern regions, away from major population centers.

Concerns Over Chinese AI Models Grow

The warning comes as US officials raised alarm about open-weight Chinese AI models achieving comparable performance to American systems at a fraction of the cost, despite ongoing efforts to restrict China’s access to advanced technology. Separately, federal agencies accused several Chinese AI companies of extracting large volumes of data from leading US models since 2024, potentially with government awareness. The developments come ahead of expected discussions between the US and China on AI safety, set to precede a planned meeting between the two countries’ leaders later this month.