Economists Antonin Bergeaud and Robin Rivaton argue in Project Syndicate that the global AI competition has shifted from a contest of algorithms to a contest of physical capacity. They write that success “increasingly depends on computing power, advanced semiconductors, physical infrastructure, and markets large enough to justify the enormous investments they require,” rather than on scientific breakthroughs alone. The authors conclude that whichever country builds the chip-manufacturing and energy infrastructure to support frontier AI at scale — not merely the country with the best models — will hold the decisive advantage.
