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American tech companies should “worry a little bit” about the subsidies their Chinese competitors receive from their government in the AI race, Microsoft President Brad Smith told CNBC.
As competition between U.S. and Chinese companies intensifies to develop the most advanced models, Smith said that the U.S. has “an advantage in terms of access to the most powerful chips in the world” and “other technology innovation.”
But, speaking in an interview on the sidelines of the AI Impact Summit in New Delhi, India, he also said: “I do think we always have to think about, maybe even worry a little bit about Chinese subsidies.”
Chinese AI companies have been supported by their government with measures such as a multi-billion-dollar national investment fund and vouchers for cheaper energy for their computing needs. Smith’s warning comes after Chinese firms released a slew of models over the past two weeks, and their lower-cost AI models could be attractive in developing nations.
