Regulation & Policy

The US-China AI race escalates in 2026 with China's DeepSeek app rivaling ChatGPT at lower costs, prompting US export controls on Nvidia's H100 and H200 chips. While the US leads in computing power—Nvidia chips enabling hyperscale data centers—China advances self-sufficiency via Huawei's Ascend 910 (60% of H100 performance) and open models like Alibaba's Qwen, with 700 million downloads. US plans emphasize deregulation and alliances; China pushes multilateral governance and AI robotics under the "AI Plus" initiative. Experts predict niche dominance: US in software, China in physical applications, influencing global standards and adoption.

The EU's probe targets X's Grok AI after reports of users creating non-consensual sexual deepfakes, with the tool generating 5.5 billion images in 30 days. Under the DSA, X faces scrutiny for risk assessments and moderation failures, risking fines up to 6% of annual turnover. Parallel investigations in the UK, Australia, and elsewhere highlight global concerns over AI misuse. Elon Musk defends free speech, but critics demand stronger safeguards against harm to women and children. This case tests platform responsibility in the AI era.