Elon Musk highlighted export controls on AI chips as a critical determining factor in US-China competition for AI leadership.

Given artificial intelligence’s growing strategic importance, its geopolitical implications cannot be ignored. Global superpowers China and the United States are actively racing to expand their footholds in this competitive landscape. When asked who will ultimately win the AI race, SpaceX CEO Elon Musk provided a direct answer during an interview on the podcast *Verdict with Ted Cruz*. He emphasized that the competition is largely between the U.S. and China, and that victory will hinge on control over AI chip fabrication.

Musk warned that if China were to invade Taiwan, “the world would be cut off from advanced AI chips,” noting that nearly all advanced AI chip manufacturing facilities are currently located there. “Whoever controls the factories that make the AI chips will win the race. If more are controlled by China, then China will win,” he added. According to Musk, the sole determinant of success is the number of domestic chip-fabrication plants a nation operates. He also stressed the critical national security imperative of building independent manufacturing capabilities.

This technological contest has hardened into what many call an “AI Cold War,” encompassing foundational research, semiconductor production, commercial market share, and national security. In response, China is aggressively pursuing semiconductor self-sufficiency. Meanwhile, Washington has imposed stringent export controls on advanced semiconductors, including high-end GPUs, and enacted legislation such as the CHIPS and Science Act to safeguard its domestic supply chain.

Bilateral tensions have further escalated over allegations of AI distillation. U.S. technology companies have accused Chinese counterparts of stealing American technology and data to train their own AI models. Beijing has consistently rejected these accusations.