Huawei and Hyperscalers:

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As artificial intelligence ushers in the next industrial revolution, the war over who will lead it is already in full force. China’s aggressive, state-driven push for global AI dominance has splintered America’s allies over the values of responsible innovation and sparked a technology arms race between Washington and Beijing. If urgent action is not taken to expand and secure American AI infrastructure, the Chinese Communist Party will weaponize global cloud networks to undermine free markets, oppress its people, and covertly influence foreign states and citizens. If AI competition is a war, then global cloud architecture is the theater. Microsoft, Amazon, and Google control 63% of the world’s $900 billion cloud market, a critical win for American AI leadership. 

But Beijing is on the offensive, infiltrating U.S. systems and proliferating its own predatory AI infrastructure. Worse, some U.S. firms are trading data and compute for Chinese market access, putting U.S. national security at risk. Huawei and Hyperscalers explores how Beijing exploits global AI infrastructure and pressures firms to sacrifice safety for growth, then provides actionable solutions for U.S. policymakers to help deploy and defend the cloud. The Problem The Solution America’s global AI partnerships have rapidly extended U.S. cloud computing infrastructure to the furthest edges of the globe, straining federal oversight capacity and creating critical cybersecurity gaps that CCP-aligned hackers and other cyber criminals exploit for geostrategic gain. 

Anticompetitive state subsidies and loan rates allow Chinese firms to aggressively expand their cloud infrastructure and undercut U.S. and allied firms in global markets. The Chinese Communist Party uses this infrastructure to absorb massive volumes of foreign data while creating lasting technological dependencies in the Global South and elsewhere. U.S. hyperscalers cooperate with the CCP’s protectionist policies and predatory data ecosystem to gain access to lucrative Chinese markets. This one-way flow of AI resources facilitates Beijing’s aggressive weaponization of artificial intelligence and places America’s AI development at risk. 

To begin reducing the hundreds of millions of cyber attacks on American cloud networks daily, the United States must treat cloud infrastructure as critical infrastructure and afford it the same oversight and protection mechanisms as America’s energy, healthcare, and transportation networks. Clear rules governing which infrastructure projects threaten U.S. national security would save American firms tens of millions of dollars annually by reducing government delays and cancellations of data cables and other cloud infrastructure.