The United States faces a “Sputnik moment.” Chinese firm DeepSeek claims its artificial intelligence (AI) model has achieved near-parity with US models in terms of functionality—at lower cost and energy use. While many AI analysts are skeptical of some portions of DeepSeek’s claims, particularly surrounding cost nuances, or even its ability to lower energy consumption, virtually all acknowledge that DeepSeek has made a serious technical achievement. DeepSeek’s technical breakthrough will intensify the US-China AI race, with significant economic and military stakes. While acknowledging uncertain AI-related energy demand, the United States must build substantial amounts of new electricity generation and transmission to win the AI competition with China.

To ensure US AI leadership, the United States must harness all forms of energy–while also promoting energy efficiency—allow a level playing field, and remove red tape constraining the buildout of critical enablers, especially transmission lines and grid enhancing technologies. A “some of the above” energy approach could force the United States to compromise on not only AI leadership, but also affordable electricity and other economic priorities.

The competition with China in artificial intelligence may be the defining national security challenge of our time. While AI’s exact electricity needs remain uncertain, substantial power infrastructure expansion and efficiency improvements are needed. By building new generation capacity, including advanced energy technologies, enhancing transmission, and optimizing power consumption, the United States can maintain its competitive edge in AI development. If the United States adopts a “some of the above” approach to energy, however, it will be waging the century’s most important technological fight with China with one hand tied behind its back.

Staff

Joseph Webster

Senior Fellow, Global Energy Center

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Image: Electric transmission lines. (Jay Heike, Unsplash)