The United States and China are building rival artificial intelligence alliances, forcing other countries to balance access to advanced chips, cheaper open models, investment and influence over global technology standards. The Associated Press reports that the divide is making AI policy a strategic choice for governments around the world.
Two competing AI alliances
The U.S.-led Pax Silica focuses on trusted technology partnerships, advanced semiconductor supply chains and cooperation among countries aligned with Washington. China is promoting the World Artificial Intelligence Cooperation Organization, or WAICO, as a more open international group.
China’s Foreign Ministry says 29 countries signed the agreement creating WAICO in July. The organization is headquartered in Shanghai and says it aims to expand AI cooperation, governance and access for developing countries. Its founding members include Kazakhstan, Pakistan, Russia and Indonesia.
Middle powers hedge their bets
Countries that lack their own leading AI models are trying to work with both sides. Kazakhstan joined the U.S. supply-chain initiative and also became a founding WAICO member. The AP reports that Kazakhstan is seeking American investment in data centers while maintaining growing economic ties with China.
Indonesia is taking a similar position. Its officials say the country wants to use the best systems from both technology ecosystems rather than choose only one. Singapore, Saudi Arabia, Japan and several European countries are also weighing how to protect their economic and security interests while keeping access to competing AI tools.
Chips and standards drive rivalry
The competition extends beyond chatbots. Washington restricts China’s access to some of the most advanced AI chips and chipmaking equipment. Beijing is using open-source models, infrastructure investment and development programs to attract partners. The AP reports that China has supported AI-related projects in at least 77 low- and middle-income countries.
Both sides are also competing to shape technical standards and rules. The AP’s global AI map shows the growing split. China’s official WAICO agreement emphasizes open cooperation and a larger role for developing countries.
AI sovereignty becomes central
The rivalry is pressuring governments, businesses and researchers to consider where their chips, AI systems and data come from. Countries that depend on foreign technology may have less freedom to set their own AI policies as the divide deepens.
The central question is whether middle powers can continue participating in both ecosystems or whether Washington and Beijing will demand clearer political and technical commitments. The outcome could influence research access, supply chains and international standards for years.
References
Chan, H.-H., & Tang, D. (2026, October 25). As the US and China form AI blocs, countries are increasingly torn between them. Associated Press. https://apnews.com/article/china-us-ai-blocs-9974a3e5dc955a93935d131a4aeb8886
Ministry of Foreign Affairs of the People’s Republic of China. (2026, July 16). Signing ceremony of the agreement on the establishment of the World Artificial Intelligence Cooperation Organization held in Shanghai. https://www.mfa.gov.cn/eng/wjbzhd/202607/t20260717_11984747.html
Associated Press. (2026, October 25). US, China form separate AI blocs. https://interactives.ap.org/embeds/8MKpf/6/