Alibaba's Joe Tsai Pushes Back On US-China 'AI Race' Rhetoric: 'Why Would Any One Country...'
Alibaba Chairman Joe Tsai criticized the U.S.-China AI competition narrative, advocating for a cooperative approach rather than a race. Speaking on the All-In podcast, he emphasized that the focus should be on the speed of AI adoption, not just model development. Tsai noted China's rapid AI integration in businesses and cautioned against the U.S. AI data center construction bubble. His comments align with Nvidia CEO Jensen Huang's views on U.S. policies potentially accelerating China's AI advancements. Alibaba is also enhancing its AI capabilities with new robotics initiatives.
Alibaba Group Holding Ltd (NYSE:BABA) Chairman Joe Tsai shared his thoughts on the U.S.-China AI competition this week, suggesting that the U.S. should reconsider its approach.
Tsai Urges Co-Operative Approach To AI Race
Speaking on the All-In podcast on Wednesday, Tsai emphasized the need for the U.S. to adopt a more strategic and long-term approach to AI, rather than viewing it as a race that can be won. His views differed with the White House AI and Crypto Czar David Sacks, also one of the hosts.
“I want the U.S. to be the most powerful country. And you know…that means winning the AI race,” said Sacks.
“There’s no such thing as winning the race. I think it’s a long marathon,” Tsai responded.
Also, In Tsai’s view, the AI race isn’t about who develops the strongest model, but who can adopt it faster. He highlighted the rapid adoption rate of AI in China, with nearly 50% of firms now using AI in their businesses, a significant increase from just 8% the previous year.
He compared AI to an “important element of life” like air and urged against any one country claiming sole ownership.
“Why would any one country say we have a sole claim to to air,” Tsai said.
In March, Tsai warned of a potential bubble in U.S. AI data center construction, cautioning that rapid expansion may outpace actual demand for AI services. He criticized the rush by U.S. tech firms and investors to build large-scale server projects without clear customer bases, calling many of the massive investments not “entirely necessary."
China's Growing Push For AI Self-Reliance
Tsai’s comments come at a time when Alibaba has been expanding its AI capabilities. Earlier this month, the company launched an in-house robotics team to advance its flagship AI models, signaling its entry into the competitive race for AI-powered physical products.
Tsai’s remarks on China’s AI progress also echo the sentiments of Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang, who warned last month that U.S. policies aimed at slowing China’s AI progress might have instead accelerated domestic competitors.
According to Benzinga Edge Stock Rankings, Alibaba has a growth score of 91.98% and a momentum rating of 85.81%. Click here to see how it compares to other leading tech companies.
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