US must win AI race or 'nothing matters', Bessent warns

Treasury Secretary Scott Bessent has issued a stark warning about the consequences of losing the artificial intelligence race to China, emphasizing that American technological leadership is non-negotiable in the modern era. The statement underscores the Biden administration's push to accelerate investment in AI infrastructure across the United States.

Bessent's comments come as the US government seeks to fast-track approval for massive data centre projects essential to training and deploying advanced AI systems. These facilities consume significant power and water resources, drawing opposition from local communities concerned about environmental impact and utility costs.

By framing AI competition as a matter of national survival, Bessent appears to be attempting to shift focus away from localized concerns about the infrastructure required to maintain American technological edge. The administration views dominance in artificial intelligence as critical to economic competitiveness and national security in the coming decades.

The remarks reflect broader concerns in Washington about China's rapid advances in AI development and the race for computational resources. US policymakers have increasingly prioritized removing regulatory obstacles to building the data centre infrastructure needed to support next-generation AI systems and maintain technological superiority.