In AI policy, it’s become a reflex to say we are in a global race with China. That shorthand can obscure the true nature of the competition. China and the U.S. aren’t just competing on model performance or chips, we’re competing on the next computing systems the world adopts, and along with it, who holds economic and political power for the next generation.

In this conversation, Jai Ramaswamy, our chief legal and policy officer, sits down with Matt Cronin, senior national security advisor at a16z, to make these competitive dynamics concrete. Cronin has worked on China-related national security issues as a federal prosecutor, held senior roles at the Department of Justice, served as Director of National Cybersecurity at the White House, and most recently as Chief Investigative Counsel and Deputy General Counsel to the U.S. House Select Committee on the Strategic Competition between the U.S. and China.

Their conversation unpacks the incentives driving the Chinese Communist Party’s push to dominate AI and what’s at stake if the world defaults to CCP-aligned AI rails.

They also get practical, outlining what “winning” looks like for the U.S.; the role of open source in global adoption; and the policy levers that play to America's strengths.

Finally, they zoom in on one opportunity with outsized impact–defense procurement reform—where Cronin has spent significant time.

If you care about the future defined by democratic values and are interested in a practical path to defend it, this is an episode for you.

Topics covered:

01:19: The Chinese Communist Party’s motivations in the AI race

04:08: Why China’s “miss” on the internet shaped its push into AI

07:48: State-led vs. market-led innovation models

10:48: What happened to China’s VC ecosystem

13:09: China’s strategy for AI diffusion and adoption

17:02: What’s at stake if China wins the AI race

23:47: The 3 key measures of US success in AI

25:25: Why open source matters for global adoption

31:05: AI policy levers that play to America’s strengths in this global race

34:15: Why defense procurement reform matters to the competitive dynamic

42:22: Final takeaways on competition, policy, and democratic advantage

Resources:

Follow Jai Ramaswamy: https://twitter.com/jai_ramaswamy

Follow Matt Cronin: https://www.linkedin.com/in/matt-cronin-8b88811

Subscribe to the a16z AI Policy Brief: https://a16zpolicy.substack.com/

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit a16zpolicy.substack.com

The Real AI Race With China Is Who Sets the Default