China wants to be the global leader in AI and is deploying industrial policy tools across the entire AI tech stack, from chips and data centers to foundation models and applications
DeepSeek’s MoE paper cites Chinese open-source datasets, benchmarking tools, and open-source MoE models like PanGu. DeepSeek also benefits indirectly from broader state investment in fundamental research and talent development in AI.
DeepSeek’s MoE paper cites Chinese open-source datasets, benchmarking tools, and open-source MoE models like PanGu. DeepSeek also benefits indirectly from broader state investment in fundamental research and talent development in AI.
I notice DeepSeek is included in the chart but very inaccurate to say DS benefits from government advocacy of open source?.
DS is clearly not a product of any industrial policy, any other portrayal is misleading...
Two quiet shifts are shaping the global economy right now:
AI is being regulated.
Inflation is cooling.
But together. they reveal a much bigger story.
Governments worldwide are accelerating AI policy:
After global summits, the push is clear
Control the technology before it controls economies.
AI is no longer just innovation. It’s infrastructure.
Meanwhile, UK inflation has dropped to 2.8%
Driven by lower electricity and gas prices.
Short-term relief for households.
But experts warn: this may not last.
Here’s the deeper connection:
AI growth depends on massive energy consumption
Inflation stability depends on cheap energy
Which creates a fragile equation:
If energy stays cheap → AI boom accelerates
If energy spikes again → inflation returns + AI costs surge
The overlooked risk:
We’re building an AI-driven future…
On an energy system that is still volatile.
Final insight:
The next global advantage won’t just be in AI innovation—
It will be in:
Energy security
AI governance
Economic stability
Whoever aligns all three.
Wins the next decade.