David Sacks, a key figure in the White House's approach to artificial intelligence and cryptocurrency, recently discussed the state of the U.S.-China tech competition, emphasizing the significance of American data centers in maintaining a leading edge. Sacks acknowledged the rapid progress of Chinese AI companies, citing DeepSeek's R1 model as comparable to OpenAI's model released just months prior. He estimated the U.S. holds a lead of three to six months, but cautioned about the speed of China's advancements.
DeepSeek, a Chinese AI model, gained attention for its widespread adoption and cost-effectiveness compared to American counterparts. Sacks defended the Trump administration's substantial investment in AI infrastructure and data centers, arguing that maintaining superior chip technology and computational power is crucial for American leadership in AI. He acknowledged DeepSeek's innovative efficiency techniques, which he believes U.S. companies will likely adopt, but stressed the continued importance of scalable computing power provided by data centers.
Sacks also addressed the possibility of intellectual property theft, suggesting DeepSeek may have employed a process called "distillation," where AI models extract knowledge from existing models. He anticipates leading AI companies will implement measures to prevent this practice. OpenAI, in response, confirmed their awareness of such attempts by companies, including those based in China, and highlighted their ongoing efforts to protect their intellectual property, including collaborating with the U.S. government.
Sacks criticized the previous administration's focus on diversity, equity, and inclusion (DEI) initiatives within AI companies, arguing that such distractions hindered progress and contributed to complacency regarding the competitive threat from China. He called for a renewed focus on innovation and competition, echoing Trump's call for a "wake-up call." Sacks noted that while Trump revoked Biden's 2023 executive order on sharing AI safety test results, he maintained the order focused on expanding data center infrastructure and clean energy.
