Cold War 2.0: How China’s New AI Redefines the Global Tech Chess Game

Artificial intelligence is at the center of a new global dispute, marked by strategic moves and billions at stake. In today's AI Bulletin, we will explore how China is challenging American hegemony in this field, as well as other relevant news from the sector in Brazil and around the world.

In just one week after the launch of Chinese AI DeepSeek on January 20, major American tech companies lost a staggering US$1 trillion in market value, according to a report by S.Paulo Newspaper. This impact highlights how technological competition between the US and China is intensifying.

According to the Brazil in Fact, this tension did not start today: since 2019, with Trump's Executive Order 13859, the United States has been trying to protect its leadership in AI and limit Chinese advances, especially in semiconductors and chips. But companies like Baidu, Alibaba and now DeepSeek show that China is not willing to be left behind.

In this transformation scenario, the IBM is taking a different approach: leaner, more specialized AI models, known as SLMs, through its WatsonX platform. This strategy could represent a new path for companies seeking efficiency and specific practical applications.

In Brazil, we see interesting movements in the adoption of AI. Central Bank is implementing AI for default risk analysis, while the The Government of Piauí launched the CapacitIA program to train public managers in the use of this technology.

A less discussed but fundamental aspect is the environmental impact of AI. According to the iG Portal, water consumption for cooling data centers is becoming a growing concern, requiring sustainable solutions.

My Analysis

In my experience of over 25 years in the technology sector, I have witnessed several cycles of innovation and market disputes. What we are seeing now is different: it is not just a commercial competition, but a true race for technological sovereignty.

During my work with startups and large companies, I have learned that innovation rarely follows a linear path. China’s entry into this scenario, with solutions like DeepSeek, could further accelerate the development of AI, benefiting end users with more options and competitive prices.

Businesses and governments need to prepare for this new reality. If you are looking to understand how to position your business or organization in this changing scenario, I can help with strategic consulting on innovation and AI. Get in touch to discuss the best approaches for your specific context.