U.S. warns allies to pick sides in AI race with China

The United States is preparing to deliver an ultimatum to dozens of countries: align with Washington's artificial intelligence coalition or risk exclusion from its technology ecosystem. A draft State Department letter, reviewed by Reuters, warns 35 signatories of a U.S. "AI Opportunity Statement" that membership in America's Pax Silica initiative cannot coexist with participation in China's competing framework.reuters

A Line in the Silicon

The letter, addressed to countries that signed the AI Opportunity Statement in June, states that "to be part of everything is to be part of nothing," urging nations to "choose deliberately" on AI cooperation. While the document does not name China directly, it declares that the Pax Silica commitment "cannot be held alongside membership in duplicative initiatives whose expectations conflict with our own".japantimes+1

A U.S. official, speaking anonymously due to ongoing internal discussions, told Reuters that the message is clear: "You can't have it both ways." The official added that "it's difficult to see how a country can credibly position themselves as trusted partners in one technology ecosystem while simultaneously signing up for an initiative designed by China to advance a competing vision for AI".reuters

The State Department declined to comment on "purportedly leaked internal documents," and Reuters could not determine when the letter would be sent or whether it might be amended.reuters

Kazakhstan at the Crossroads

Kazakhstan has emerged as the focal point of the dispute. It is the only country known to have joined both the U.S.-led Pax Silica framework, which Washington launched in December 2025, and China's World Artificial Intelligence Cooperation Organisation, which President Xi Jinping unveiled in July with 29 founding members including Russia, Pakistan, and Brazil. Kazakhstan's reserves of critical minerals make it strategically valuable to both sides.cryptobriefing+1

About two dozen countries have joined Pax Silica, including close U.S. allies Japan, Australia, and South Korea. The initiative aims to secure supply chains for AI models, semiconductors, and critical minerals while reducing reliance on adversaries.reuters

A Bifurcating AI Landscape

The ultimatum arrives as Chinese open-weight AI models have made rapid gains against proprietary systems from U.S. companies such as OpenAI and Anthropic. Analysts quoted by the South China Morning Post have warned that China's WAICO risks being seen as "naturally opposed" to the United States and its allies, potentially discouraging prospective members.scmp+1

Beijing, meanwhile, is weighing its own restrictions on overseas access to some of China's leading AI models, underscoring how national security concerns are reshaping technology cooperation on both sides of the rivalry.japantimes