US Risks Losing the AI Race to China: Anthropic Outlines Solutions to Avoid It

Despite the fact that American companies currently lead in AI development, a recent study by Anthropic warns that the U.S. could lose its edge to China in the coming years. This could happen if U.S. authorities do not make crucial decisions swiftly, particularly in the energy sector. The study highlights that in 2024, China is set to launch 400 gigawatts of generating capacity, compared to approximately 40 gigawatts in the U.S.

According to the company’s projections, by 2027, training a single AI model will require a data center with a 2-gigawatt power consumption, escalating to 5 gigawatts by 2028. With several companies in the U.S. engaged in AI, the cumulative power demand is expected to reach 20-25 gigawatts by 2028—double the peak consumption of New York City. And this estimate only accounts for training; inference operations will demand similar amounts of energy.

Although the Trump administration has already implemented several measures to support the AI industry, experts believe more action is necessary. Anthropic emphasizes two key areas where the government could expedite progress. The first is the establishment of essential infrastructure for training models via several mega-clusters. This requires streamlining the permitting process for data centers and generating facilities, as well as allowing the use of federal land for their construction. Additionally, federal power transmission lines to AI clusters need to be developed.

The second area is to create a comprehensive infrastructure that spans the entire country, enabling the construction of hundreds of smaller data centers for inference and business purposes. This will demand the government simplify the licensing and funding processes for building geothermal and gas power plants, as well as compact nuclear facilities. Moreover, it will be essential to initiate training programs for energy engineers and electrical installers to ensure the development and stable operation of the nation’s energy systems.

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