Treasury chief warns U.S. must preserve AI advantage over China

In a recent policy dialogue, Treasury Secretary Scott Bessent warned that a Chinese lead in artificial intelligence would jeopardize U.S. security, comparing it to the importance of a massive defense budget. He praised the organic growth of the American AI sector, citing chip production and companies like Anthropic, which he expects to launch the largest IPO ever. Bessent faulted data-center builders and large AI labs for neglecting outreach to nearby communities, noting that protests are often well-organized rather than spontaneous.

He called for clearer communication and responsibility from these firms. Additionally, he pointed to AI’s broader economic impact, including a surge in startups, hiring, and potential advances in medicine. Finally, he dismissed proposals to pause AI development, arguing that rivals such as China would not follow suit.