17 March 2024

Why America Must Invest in DOE Labs To Win the AI Race Against China

Matt Hourihan & Divyansh Kaushik

The breadth of artificial intelligence (AI) applications is staggering, from bolstering national defense to revolutionizing energy systems and advancing scientific discovery. This technology is pivotal in shaping our technological and economic competition, particularly with China. To secure our advantage, we must harness a powerful but often overlooked asset: the Department of Energy’s (DOE) national laboratory system. These seventeen labs, with their thousands of top-tier scientists and engineers, are pivotal in maintaining our national security, driving energy innovation to benefit consumers and businesses, and pushing the boundaries of scientific breakthrough. Yet, to fully leverage AI’s potential, decisive action and leadership from both Congress and the White House are imperative.

Why Investment is an Ongoing, Strategic Advantage

Investing in DOE national labs is not just about maintaining technological leadership; it’s a strategic imperative for national security, providing a bulwark against the multifaceted threats posed by technological ascendancy of the Chinese Communist Party (CCP). The dual-use nature of AI and other emerging technologies necessitates a strategic approach that balances innovation with security, ensuring the United States remains at the forefront of military, scientific, and energy advancements. The consequences of inaction are dire, potentially ceding ground to China in critical areas that could determine the future balance of global power.

The DOE labs are already at the forefront of AI research, pushing the boundaries of what is possible in areas such as quantum computing, robotics, and nuclear energy. However, to fully harness AI's potential for national security purposes, we must significantly increase our investment in these institutions. This entails not only funding for advanced research projects but also support for the development of high-performance computing infrastructure, and the cultivation of a skilled workforce capable of leading the next wave of scientific innovation.

The benefits of investment will be manifold. For national defense, stronger labs will enable the United States to develop cutting-edge AI applications like autonomous systems for threat detection and response, cybersecurity defenses capable of thwarting sophisticated attacks, and simulation technologies for strategic planning. The DOE labs play a particularly central role in nuclear security, and AI tools will enhance U.S. stockpile modernization and surveillance of foreign nuclear activities to aid nonproliferation. These capabilities are essential for maintaining a strategic edge in an increasingly contested global environment.

In energy, advancements in AI can lead to more efficient energy production, enhanced grid security, and accelerate the design and development of next-generation nuclear reactors. For instance, power outages currently cost American businesses more than $150 billion per year. AI models will revolutionize the tools available for electrical grid load forecasting and severe weather prediction, improving reliability, and reducing interruptions.

And beyond technological advance, lab-driven AI investments can aid the process of fundamental scientific discovery itself. In fields like nuclear or high-energy physics, AI-powered models can efficiently capture and analyze the massive datasets involved or drive automated experimentation. AI can also assist science to reveal how matter behaves in extreme environments, crucial for unlocking the mysteries of fusion.

Public-Private Response to Competing With the PRC

In confronting China’s aggressive pursuit of technological supremacy, empowering DOE labs is paramount. The CCP's massive investments in research and development (R&D), targeted talent acquisition programs, and an integrated approach to military and civilian technology development, demands a robust and proactive response from the United States. Under Xi Jinping's leadership, the CCP has not only emphasized the centrality of science and technology for national rejuvenation but has also systematically restructured its national innovation system to secure a dominant position on the global stage. The commitment is evident from Xi's own admiration for the role of American national labs, signaling their importance in driving technological breakthroughs. Our answer to this challenge must be multifaceted, but the empowerment of the DOE national laboratories should be a key element.

By prioritizing and increasing funding for the DOE national labs Congress can ensure American AI technology remains generations—not merely years—ahead of the CCP. This commitment should be viewed not just as an expenditure but as an investment in America's security, competitiveness, and technological leadership. Congress should also consider additional policy reforms to enhance the labs' ability to pursue big ideas, enhance the labs’ role in broader science strategy, enable closer collaboration with industry and academia, foster entrepreneurial cultures throughout the lab system, and secure our research enterprise from foreign adversaries.

The DOE national labs are a national asset of unparalleled value in the struggle for technological leadership. In the face of China's determined pursuit of tech supremacy, we must respond with equal determination. By investing in the talent, infrastructure, and collaborative ecosystem of these labs, we can cement America’s position as a global leader in AI and ensure our continued prosperity and security in the 21st century.

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