A global race to dominate artificial intelligence (AI) is driving an unprecedented semiconductor spending spree, pitting America’s strategy of massive capital investment against China’s urgent push for self-sufficiency in the face of U.S. sanctions. The chase for AI supremacy has turned chipmakers in both countries into red-hot investment targets.
Over the past month, U.S.-based OpenAI, the world’s largest AI startup, has signed procurement deals with three semiconductor giants — Broadcom Inc., Advanced Micro Devices Inc. (AMD), and Nvidia Corp. The combined orders carry a staggering combined power requirement of 26 gigawatts, enough electricity to power nearly three New York Cities at peak demand. It is a testament to the brute-force, capital-intensive strategy the U.S. is deploying to win the AI race.
