Eric Schmidt Drops AI BOMBSHELL. China Might WIN The AI Race...

You look at DeepSeek. Deepseek showed up, right? Nobody expected this. It turns out it's on par now with some of the top models. Welcome. China has arrived in the competition. What would happen if China beat us? Let's think about it. The path to intelligence, that's superhuman intelligence. Think of the national security implications of that competition. This is why I believe and I'll say directly to you that although everyone is concerned about Taiwan, I'm much more concerned about this because if they come to super intelligence, this strong form of intelligence first, it changes the balance of power globally in ways that we have no way of understanding, predicting or dealing with. So what happens when intelligence itself becomes the battleground? Not weapons, not money, but raw cognitive power. At a pivotal congressional hearing, two of Silicon Valley's most influential minds, former Google CEO Eric Schmidt and Scale AI Alexander Wang sounded the alarm. Not about the future, but about the present. A race we are already in. A rival we've actually underestimated and a war for AI dominance that could redefine global power. Now, this isn't science fiction. This is happening right now. And what they said about China, you need to hear it. It is crucial that America get there first. What is China doing? They're leading in something open source. They are very close behind us. You all have done a great job in doing chip restrictions and things like that to try to slow them down. They're clever and they're smart. They have industrial programs, huge grants going into these companies and they're weaponizing up in the sense of competition. If you look at Deep Seek, Deepseek showed up, right? Nobody expected this. It turns out it's on par with some of the top models. Welcome. China has arrived into the competition. And now essentially you could see there that Eric Schmidt basically spoke about the fact that Deepseek pretty much came out of nowhere and took everyone by surprise. The sheer cognitive power that Deepseek has at such limited compute to be able to train the model was rather surprising. And we mustn't underestimate China because they are working on really significant AI advancements that could potentially surpass us. And in this video, you'll see time and time again the references that are made to China's advancements. Now, you have to understand that one of the key things that we are currently thinking about is what if China actually managed to pull ahead. Right now, they seemingly, you know, 3 to 6 months behind us, but of course, things can change in the AI race. A breakthrough could absolutely flip the landscape and maybe China pulls ahead even further. So, Eric Schmidt basically talks about what could happen if that does occur. the path to intelligence that superhuman intelligence. Think of the national understanding, predicting or dealing with. Thank you, Mr. Chairman. You can clearly see here that you know we are currently dealing with unknowns unknowns. Nobody really knows what super intelligence is going to be able to do which is why the prospect of an adversary gaining access to that before us is so frightening. What are the implications of this? It's honestly right now anyone's best guess. Of course there are a bunch of different things that will be discussed in this video but right now we definitely need to focus on speed. Unfortunately for us speed isn't happening at the rate that we want it to. One of the things that gets discussed here is overregulation and they even talk about how the EU is moving at a snail's pace compared to the rest of the world's innovation and it's actually something that we should avoid. Well, thanks. So you we were talking about that. So what kind of things have Europe decisions European leaders have made that we need to avoid? Well, the primary issue is overregulation. Um we have a similar problem in America in that uh the overlapping set of local federal state rules which were done with good intentions have the property that they're slowing things down. Uh our competitor China is not a democracy. It's an autocracy whatever you want to call it and they just decide. So yeah that is a key advantage that China has. They don't have to have all of these regulations. They simply say this is going to happen and it happens. Now, of course, that's not what we would want for Western countries, but we have to understand the forces that we are competing with. Now, if we're going to actually take a look at what could occur if China gets ahead, one of the thing that Eric Schmidt talks about is the fact that there are military advances and advantages that this country could have that would really put us in a vulnerable position. And it's eye opening because of course, a super intelligent AI could design weapons that we just can't even predict. The common way that I like to think about this, I don't remember where I got this example from, but imagine bringing a F-22 Raptor or a tank back to the medieval ages. You would absolutely destroy them. And the

only thing there is, of course, the technology. Um, in this fight, as I said before, if they get there first, we will be very upset. All of us will be alive when this occurs. Every one of you will see it. Imagine a situation where attacks that we cannot even imagine are unleashed by China in an adversarial thing. We have no concept of having a super intelligent opponent where we're not as intelligent as they are militarily what this means and then what because are you right about what they can do militarily and then this is we need to act now. So u in the framing in China and Taiwan which is discussed a great deal. Everyone assumes that it's a battle of missiles and aircraft carriers. That's not correct. It will be a battle of swarms of drones. Those drones will be highly intelligent, highly planned, and they'll do maneuvers that no one can anticipate. We collectively are not ready for that. Imagine a situation where China has invented new algorithms for military attacks and defense that we cannot even conceive of. Remember, I'm discussing a world where humans have a partner that is smarter than the collection of those people. As I said, this will happen in our lifetimes, and it's important that we get there first. Uh if you take a look at Ukraine, Russia right now, you see the future of war. Um I'm assuming, by the way, that China would start by cyber attacks and so forth. There's evidence that uh these new systems will be able to come up with zeroday exploits that we cannot foresee. A zero day exploit is something we've never seen before and we can't anticipate. There's lots of people who were worried that biological attacks can be done and there there's lot there's a report from the emerging biothreats commission this week with the great details and there's a classified version that all of you should take a look at. There's plenty of evidence that these things are possible. So Mr. Wang, you see you're shaking your head. I only have about 30 seconds, but if you'd like to make a comment on what he was that comment. Uh I agree with Dr. Schmidt that uh the potential implications of national security are in are incredible. Um as he mentioned, I think the place we're going to see this first is in cyber. Uh I think we're going to see agentic cyber warfare in which we will see um incredibly powerful AI and large scale data centers being utilized to hack into our systems. And so one of the things we now discuss is what is China actually planning? I'm not sure some of you guys have been paying attention to China's recent initiatives, but they essentially are taking AI as serious as they've taken anything. So it's really important to understand the severity of the situation because it's not like they're turning a blind eye to this technology. They are going full throttle when it comes to AI. So take a look to hear what Alexander Wang talks about. Over the past decade, it's become clear that the United States faces intense global competition in determining how AI should evolve and who should lead. In 2018, the Chinese Communist Party's AI master plan started taking shape. They were already developing advanced AI capabilities and using that technology to surveil and suppress their people. Fast forward to today, their plan is more sophisticated and expansive. It includes four key areas of focus. First, the CCP is taking a whole of country approach, having recently launched their AI plus initiative. Second, the CCP is outinvesting us in data, spending billions on AI ready data and unlocking vast public data sets to fuel AI systems. Third, they're finding ways to catch up on compute and building out their physical infrastructure. And lastly, they're developing leading AI models and exporting them to the world. So now it's time to actually think about what could the United States do to actually ensure AI dominance and ensure that it isn't some totalitarian government that really takes control. You're about to hear from Alexander Wang and then you're going to hear from Eric Smith. But we are not here today to just talk about what China is doing, but to identify how the US can lead. Given how close the competition is across all foundational elements, the policies this Congress promotes could determine the outcome. Global AI dominance is not about trying to level the playing field by mimicking China's authoritarian way of government and AI adoption. Instead, the United States must chart our own course, one that is anchored in American values. This is vital to our long-term national security. This requires decisive action by the United States across four main themes. Dominate, unleash, innovate, and promote. To dominate, we need to win on data. The US government is one of the largest producers of data in the world. But currently, most of that data is unavailable to advance American AI leadership. There are three immediate actions that would move us forward towards data dominance. First, establish a national AI data reserve. This resource should serve as a centralized hub for the government's AI work, housing relevant government data and allowing it to be easily shared between agencies and enabling widespread AI adoption. Second, make all government

data AI ready and stand up AI data infrastructure to enable scaled implementation. And third, Congress should invest to position data dominance as a national priority. The next theme is unleash, meaning we must unleash AI technology and establish an agentic government. An agentic government is one that uses AI under human supervision to enhance its operations. For example, federal agencies could leverage AI to streamline veteran healthcare paperwork, improve fraud detection at the IRS, and boost efficiency and information sharing across agencies. This will improve the lives of public employees and the American people. Congress should require each agency to set up at least one flagship agent government program. Next, we must maximize the ability of companies to innovate. I believe the right regulatory framework is one that allows for innovation while still creating proper guardrails. Congress should take three actions. First, confirm a use casebased regulatory framework and conduct an analysis to address regulatory gaps. Second, establish one single federal AI governance standard to avoid patchwork legislation at the state level. And third, implement policies that enable American workers to become the AI workforce of the future. These policies would provide the skills necessary to train, fine-tune, and evaluate AI systems. The final theme is promote, meaning we need to promote US technology globally. Countries around the world, what I call AI geopolitical swing states, will soon be forced to choose between Western or CCP controlled technology. To help make sure they choose western technology, Congress and the administration should empower NIST to complete all relevant measurement science for AI and export it to the world through the global network of AI safety institutes. America led the industrial revolution, the space race, the internet a frontier, and with your assistance, I'm confident we will lead again. And so here is where Eric Smith gives his recommendations on what the USA should really do when it comes to beefing up the USA's dominance in AI. The arrival of this new intelligence will profoundly change our country and the world in ways we cannot fully understand. And none of us including myself and frankly anyone in this room is prepared for the implications of this. What's happening at the moment in our industry is that we're very quickly for example developing AI programmers and these AI programmers will replace uh traditional software programmers. We're building in the next year AI mathematicians that are as good as the top level graduate students in math. This is happening very quickly. You can look at this in a number of the uh products. Today you think of AI as chat GBT, but what it really is a reasoning and planning system that we've never seen before. The implication of this is profound. Um, in terms of the way the algorithms work, they're going to need a lot more computation than we've ever had. energy, and I'll talk about that. What does the industry need? We need high skills immigration. We talk to you about this every day. uh light touch regulation around cyber and bio threats. We can talk about that and most importantly we need the energy and the numbers are profound. Um what we need from you if I may say that directly is we need energy in all forms um renewable non-renewable whatever it needs to be there and quickly. I and others are investing in things like fusion which are incredible but they're not going to arrive soon enough for the need. And I'll frame this at the end by my comments about China. So people are planning 10 gigawatt data centers. Now just to do the translation, an average nuclear power plant in the United States is 1 gawatt. How many gig how many nuclear power plants can we make in one year where we're planning this 10 gawatt data center? Gives you a sense of how big this crisis is. Um many people think that the demand in of energy part that our industry takes will go from 3% to 99% of total generation. One of the estimates that I think is most likely is that data centers will require an additional 29 gawatts of power by 2027 and 67 more gigawatts by 2030. Gives you a sense of the scale that we're talking. These things are industrial at a scale I have never seen in my life. the in the terms of energy planning the current model is mostly natural gas eco plants plus renewables and that's probably going to be the path we're going to have to follow right to get there and u for all the reasons that you can imagine we have a bunch of regulatory issues around fixing the energy grid. It takes on average 18 years to get the power transmissions and so forth to put these things in place. We need to find federal ways to preempt that and make it happen faster in order to deal with the needs. So, as I spoke about before, overregulation is

something that is, you know, not great for the United States. And they're probably going to have to rapidly change their policy so that they can not only build out the infrastructure to support these AI models, but also so that they can, you know, develop these AI models without further oversight. Of course, safely, by the way, just so you guys know that bit. But, of course, so that they can maintain a competitive advantage. And if you wonder what it looks like if China wins, well, we have two statements once again. One from Alexander Wang and then from Eric Schmidt. Why it's absolutely essential that we win this race to a goal that's not as clear as I would like. Uh Dr. Schmidt, um in 5 to 10 years, every American citizen will have the equivalent of an Einstein on their phone or in their pocket. This is an enormous increase in power for humans. What if that Einstein is a Chinese one? If we fall behind the Chinese Communist Party, uh this technology will enable the CCP as well as other authoritarian regimes to utilize the technology to uh over time effectively take over the world. Um you know, they'll be able to export their ideologies. utilize as a military technology to invade other countries. Um, and they'll be able to use it for uh effectively spreading their regime in a more broad way across the