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U.S. and China Build Rival Global Orders for Artificial Intelligence

Control of chips, cloud access and AI models could lock countries into foreign dependence or force urgent domestic investment in compute and data infrastructure.

Overview

  • China launched the World Organization for Cooperation in AI (Waico) in July and secured declarations from 29 countries, including Brazil, to promote open-source models and broad participation.
  • The United States created Pax Silica in December 2025 and expanded it to 23 countries plus the European Union in June to concentrate access through a ‘trusted partners’ network and to secure semiconductor, minerals and energy supply chains.
  • Brazil signed Waico but Brasília says it will not depend on any single model and will keep dialogue with all initiatives while pursuing a strategy for digital sovereignty.
  • Experts warn the U.S. model risks excluding many countries and locking them into paid, closed-source systems while open-source tools require local compute, storage and skills to be useful, a gap that can force spending on foreign cloud contracts.
  • The competing blocs are likely to shape which countries buy chips, cloud services and infrastructure and could push middle-income states either to deepen ties with Beijing or Washington or to speed public investment to retain national control; the UN secretary-general and China’s president framed Waico as both an opportunity and a collective safety risk.