As the US and China form AI blocs, countries are increasingly torn between them

HONG KONG (AP) — With the leading AI powers, the United States and China, establishing their own AI blocs, other countries are navigating how to benefit from both groups and not fall behind. Amid rising tensions, experts warn that countries may soon have to choose between the U.S.-led Pax Silica and China’s World AI Cooperation Organization. This could leave many nations in a dilemma: should they align with the U.S.'s advanced chips and technologies, or join China’s more affordable, open-source AI systems?

Kazakhstan, a Central Asian country of approximately 21 million people, is a unique case, having joined both initiatives. In June, the country's AI minister visited Washington to join the U.S. group working to strengthen AI supply chains. Later that month, Kazakhstan signed a founding member agreement with China's initiative to shape the global AI agenda.

This allows Kazakhstan to enjoy both the benefits of Pax Silica, including technological partnerships and high-tech manufacturing jobs, and join China's World AI Cooperation Organization, where it hopes to have a voice in setting AI standards alongside 28 other countries.

Dana Masalimova, a former Kazakhstan diplomat and scholar, notes that countries are "hedging" as they don't want to be forced into a binary choice. Kazakhstan is well-positioned to take advantage of both U.S. and Chinese investments. The nation has rich critical mineral resources essential for AI development and enjoys low-cost electricity to power data centers, which have become politically sensitive in the U.S. Earlier this year, Kazakhstan signed a $10 billion investment deal involving Nvidia to build a "data center valley" in the country.

Meanwhile, Chinese companies are increasingly investing in Kazakhstan, with foreign direct investment reaching a record $2.8 billion in 2025.

Both the U.S. and China are leveraging access to AI to increase their global influence. President Donald Trump has emphasized that "whoever wins AI, wins." The U.S. government has accused China of large-scale "distillation" or extraction of capabilities from American models, while China denies these claims, asserting that the U.S. is monopolizing AI and restricting access to cutting-edge AI chips and chipmaking machinery.

Washington has stated that Pax Silica is only for trusted partners who do not engage in initiatives advancing a competing vision for superintelligence.

In contrast, Beijing promotes the openness and inclusiveness of its World AI Cooperation Organization. The Chinese embassy in Washington stated that AI should not be owned by major countries. The two AI powers have different messaging primarily because Beijing seeks to court third countries in its bid to build an alternative coalition, while Washington already has a powerful network of allies.

Kyle Chan, a fellow at The Brookings Institution's John L. Thornton China Center, points out that this creates an advantage for what he calls "swing countries."

Other countries like Indonesia and Singapore may also find themselves in a similar position, as they possess resources vital for AI and other technologies, such as nickel and copper. These nations are seeking to benefit from both AI powers, with Indonesia recently joining China's World AI Cooperation Organization.