According to Rest of World, many countries are deliberately splitting their AI-related investments between the United States and China rather than aligning exclusively with either power. This pattern is visible from Latin America to Southeast Asia, where governments are engaging with both sides of the technological rivalry.
The approach appears to be a hedge against the risks of the intensifying U.S.-China competition. By maintaining ties with both blocs, these countries can access chips and AI models from either side while avoiding total dependence on one superpower.
The report frames this as a strategic balancing act in what it calls the U.S.-China AI “Cold War.” While the strategy offers autonomy, it also leaves these nations exposed to shifting tensions between Washington and Beijing.