US-China AI race could face financial setbacks, mass layoffs over next three years: Report

The intensifying artificial intelligence (AI) race between the US and China could face growing financial risks, including a potential “AI bubble burst” and mass layoffs over the next three years, according to S&P Global Ratings.

The report highlighted, the global artificial intelligence (AI) race is increasingly becoming a contest between China’s state-led approach and the US market-driven model.

However, the outcome remains “uncertain,” as “China shows advantages in government support and national coordination while the US hyperscalers plan to invest vastly larger sums and have unimpeded access to cutting-edge technology.”