Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, believes that the United States may temporarily lead in the development of artificial intelligence chips, but China will continue to have the power to manufacture applications for these chips, and this will not change anytime soon. Dalio said in an interview last month that although U.S. chips are slightly more efficient, China has advantages over the United States in mass-producing semiconductor chips and developing methods to apply artificial intelligence.
"We design chips, but we can't produce them efficiently. By and large, what we produce - any manufactured product - is not cost-effective," Dalio said.
He believes that the United States' advantage in artificial intelligence chip development lies in its continued investment in higher education and research, which attracts a global workforce.
Dalio added: "If we can work well together on that creatively, with the rule of law and all that work, we have those things and that's our competitive advantage. But we don't have manufacturing, and we're not going to be able to compete with China in manufacturing in our lifetime, I don't believe it."
In January this year, Dalio said on the All-In podcast that artificial intelligence is a "war that no country can lose" and that victory is "more important than profit."
Dalio said that while Chinese-made chips have minor flaws compared to U.S. technology, the chips are still much cheaper than their U.S. counterparts and China may shift its focus to artificial intelligence applications.
Dalio said in a podcast in January that "China's game will be chips, very cheap chips embedded in manufactured products" such as robots.