US and China split global AI landscape into rival camps

A Boston Consulting Group (BCG) study warns that the artificial‑intelligence sector is polarising into two incompatible ecosystems led by the United States and China. The report says the United States retains a clear advantage in talent, capital and data‑center capacity—over 50 GW, more than China and the EU combined—while China is rapidly integrating AI into its real‑economy and pursuing a “fast‑follower” strategy. The analysis concludes that other nations will soon have to align with one side or the other.

At the same time, U.S. export controls on high‑end chips and lithography equipment have failed to curb Chinese progress. China’s Moonshot AI unveiled the Kimi K3 model, which independent tests claim rivals leading systems from OpenAI and Anthropic. The development has rattled markets: the Nasdaq‑100 fell more than 10 % from its June peak, the Philadelphia Semiconductor Index (SOX) posted a week of declines, and South Korean chipmaker SK Hynix saw its share price drop, reflecting investor concerns over a shifting AI power balance.