Hey readers,
ChatGPT has released a new model named 'Astra'. As per reports, it is the closest we have come to AGI, or artificial general intelligence. An AGI system can learn, plan, explore and transfer skills across different areas without needing to be programmed separately for every task. If this really works as expected, it could change many jobs and industries.
ChatGPT is a closed model. What does that mean? The company controls the underlying technology, training data and workings. They aren't disclosed to anyone outside. So users can access and use the model, but they cannot simply take the model and modify or deploy it however they want.
Other US-based models such as Gemini and Claude are also closed. Nvidia's Nemotron is an exception. On the other side, Chinese models such as Qwen, Kimi and DeepSeek are open source. They are generally cheaper to use and can be deployed and modified more easily across different companies and applications.
So, naturally, most of the discussion around the AI race is about which model is better.
But the more I look at it, the more I feel that the actual race is about something else.
It is about the ecosystem that runs these models - metals and minerals, their processing, data centres, electricity, chips, machines, manufacturing and much more.
And here comes the uncomfortable part.
The capabilities needed to build this ecosystem are divided between two blocs.
China controls much of the world's critical mineral processing and manufacturing supply chains. The West has some of the world's best chips, AI companies and advanced technology. Both sides are now trying to use what they have to protect their position and build alternatives to what they don't.
That's what I explored in my article, Asia Must Not Let AI Become A New Cold War.
The interesting part is that neither side can easily do without the other. China needs Western technology, while the West still depends heavily on Chinese processing and manufacturing.
So instead of one global supply chain, we are slowly seeing two competing systems being built around it.
The US has Project Vault, FORGE, MINVEST and Pax Silica, all aimed in different ways at strengthening its access to critical minerals, technology and the broader supply chain. China, meanwhile, is trying to bring countries into its AI ecosystem through WAICO.
And then humanoid robots entered the picture.
Elon Musk says there could be a billion humanoid robots within 10 years. That's a massive number, and perhaps even a slightly uncomfortable one to imagine.
But before we start wondering what a world with a billion robots would look like, there is a more basic question.
Can the US actually make a billion of them without China's help?
A humanoid robot needs motors, actuators and powerful magnets. Those magnets need rare earths. And China dominates almost every step between mining those minerals and turning them into the magnets.
And if demand for humanoids really explodes, they will compete for many of the same materials needed by electric vehicles, drones, defence equipment and industrial machinery. That's what I discuss in The US Cannot Break China's Grip On Robotics.
This is where the two stories come together.
The AI race and the humanoid race may look like two different technology stories. But underneath, they are increasingly about the same thing: who controls the ecosystem needed to build the technology.
The West and China can restrict access to each other's resources and strengths. But each side has something the other needs. But in less co-operative international trade, the technology becomes more expensive and supply chains less efficient.
And then there are countries like India. They need Western technology, but they also depend on Chinese inputs and supply chains across many industries. So choosing one side completely may not be as simple as it sounds.
Perhaps this is where Asian countries have an important role to play.
The Cold War divided the world into competing blocs. But Asia today has much more at stake in keeping global supply chains open. It also has enough economic weight to push back against a world where every technology eventually gets divided into two separate systems.
That's the week.
If you made it this far, I'd love to hear from you.
Which of these stories stayed with you? What stories can you share around these topics?
And more importantly, what should I dig into next?
An everyday object, a policy, a price that suddenly changed, a trend that's growing around... send it my way. Just hit reply. I read everything.
See you next Saturday.
Cheers,
Swapnil
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinion of NDTV Profit or its affiliates. Readers are advised to conduct their own research or consult a qualified professional before making any investment or business decisions. NDTV Profit does not guarantee the accuracy, completeness, or reliability of the information presented in this article.
ALSO READ: The US-China Humanoid Robot Race Has A Bigger Problem: China Controls The Magnets
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.