Sen. Ted Cruz (R-Texas) warned that the U.S. faces a pivotal race with China for AI dominance, arguing that the winner could determine both the technology’s economic impact and the values embedded in its development.

Cruz Warns of China AI Dominance

On Monday, Cruz said in a post on X that the U.S. and China are engaged in a race "to see who will develop AI first and who will dominate AI," adding, "there’s going to be a winner."

"Whoever wins, we will have trillions of dollars of new investment. We will have millions of new jobs. But even more importantly, the values of the country that wins will suffuse AI," he said.

Cruz warned that a Chinese victory could mean AI is used for "espionage and propaganda and control and surveillance."

He said he wants American AI to reflect "free speech and individualism and free enterprise and privacy."

Cruz Criticizes AI Companies

The Texas Republican also turned his criticism toward the U.S. AI industry, accusing major companies of seeking government advantages that could strengthen their market positions.

"What we’re seeing is a money grab," Cruz said, invoking the economic concept of rent-seeking. He argued that AI companies could ask the government to "set the rules so no one can compete with us."

Cruz also criticized Anthropic and groups associated with effective altruism, arguing that they could use greater government influence over AI policy to advance their ideology and suppress dissent.

US AI Competition With China

Last week, Treasury Secretary Scott Bessent said the U.S. sought a "shared vision of common goals and common threats" with China on AI and proposed a mechanism for both countries to notify each other about AI incidents with potential national security implications.

Earlier this month, House Speaker Mike Johnson (R-La.) said Congress needed carefully designed AI guardrails that addressed potential harms while protecting U.S. innovation and its technological edge over China.

Last month, Space Exploration Technologies Corp.‘s (NASDAQ:SPCX) CEO Elon Musk said China was "by far" the strongest competitor in AI, echoing his earlier prediction that China would eventually become SpaceX’s most important rival in rocket technology.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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