No country controls every layer: The hidden AI systems reshaping global power (www.abc.net.au)

A recent analysis highlights the intricate and layered ecosystem supporting artificial intelligence (AI), beyond the prominent interfaces like ChatGPT and Claude. The control over critical components such as chips, data, energy, and human expertise is reshaping global power dynamics, particularly in the Asia-Pacific region. Key players like NVIDIA and Taiwan Semiconductor Manufacturing Company (TSMC) dominate chip design and manufacturing, yet they rely on specialized technology and materials from various countries. This interdependence among nations complicates the competitive landscape and emphasizes the geopolitical significance of AI, as no single country holds dominance over every layer of AI infrastructure. This intricate AI "stack" reveals how dependencies can create vulnerabilities within global supply chains. For instance, while the U.S. leads in AI models and investment, Taiwan's advanced chip production hinges on resources from the Netherlands and Japan. The situation underscores the importance of collaboration across nations, even among rivals, highlighting the dual-edged nature of policies like export controls that aim to curb competitors while inadvertently fostering efficiency in their alternatives. As countries vie for leadership in AI, they must navigate these complex relationships, where technological and economic strategies are deeply intertwined with global diplomacy.