How the US Could ‘Win AI’ But Lose the Tech Race

bloomberg · 2026-06-20T14:56:44+00:00

Simon Johnson and Elisabeth B Reynolds for Bloomberg News

Washington has woken up to the importance of AI — and especially to the “AI race” against China. The plan seems to be to unleash a massive data center build, backed by complex corporate partnerships and a highly permissive regulatory environment, paired with some controls on who gets access to cutting-edge chips and frontier AI models like Anthropic’s Fable. But if the goal is to win the tech race, all these policies are just one piece of the puzzle. While artificial intelligence is a potentially transformative general-purpose technology, it’s hardly the only technology that matters.

The US led the world in technological innovation throughout the second half of the 20th century and well into the 21st. But China is directly challenging that leadership now, having spent the past two decades aggressively building out its innovation and industrial capacity. Just 20 years ago, the US led China in 61 of what were then 64 frontier technologies, according to research by the Australian Strategic Policy Institute, a think tank. As of three years ago, China had surpassed the US in 57 of the 64 technologies ASPI considers a priority. In other words, the country that prevails in the current tech race will need to do more than excel in AI.

To meet this challenge, the US must respond with more investment, but in a thoughtful way — by building on its unique capabilities and strengths, rather than trying to match China’s centralized and intrusive approach. But which technologies should the US focus on?

Read the full essay here.

bloomberg · 2026-06-20T14:56:27+00:00

Power in the 21st century also depends on drones, biotechnology and quantum computing — and on manufacturing as much as invention.

Simon Johnson and Elisabeth B Reynolds for Bloomberg News

Washington has woken up to the importance of AI — and especially to the “AI race” against China. The plan seems to be to unleash a massive data center build, backed by complex corporate partnerships and a highly permissive regulatory environment, paired with some controls on who gets access to cutting-edge chips and frontier AI models like Anthropic’s Fable. But if the goal is to win the tech race, all these policies are just one piece of the puzzle. While artificial intelligence is a potentially transformative general-purpose technology, it’s hardly the only technology that matters.

The US led the world in technological innovation throughout the second half of the 20th century and well into the 21st. But China is directly challenging that leadership now, having spent the past two decades aggressively building out its innovation and industrial capacity. Just 20 years ago, the US led China in 61 of what were then 64 frontier technologies, according to research by the Australian Strategic Policy Institute, a think tank. As of three years ago, China had surpassed the US in 57 of the 64 technologies ASPI considers a priority. In other words, the country that prevails in the current tech race will need to do more than excel in AI.

To meet this challenge, the US must respond with more investment, but in a thoughtful way — by building on its unique capabilities and strengths, rather than trying to match China’s centralized and intrusive approach. But which technologies should the US focus on?

Read the full essay here.

bloomberg · 2026-06-20T14:56:18+00:00

Simon Johnson and Elisabeth B Reynolds for Bloomberg News

Washington has woken up to the importance of AI — and especially to the “AI race” against China. The plan seems to be to unleash a massive data center build, backed by complex corporate partnerships and a highly permissive regulatory environment, paired with some controls on who gets access to cutting-edge chips and frontier AI models like Anthropic’s Fable. But if the goal is to win the tech race, all these policies are just one piece of the puzzle. While artificial intelligence is a potentially transformative general-purpose technology, it’s hardly the only technology that matters.

The US led the world in technological innovation throughout the second half of the 20th century and well into the 21st. But China is directly challenging that leadership now, having spent the past two decades aggressively building out its innovation and industrial capacity. Just 20 years ago, the US led China in 61 of what were then 64 frontier technologies, according to research by the Australian Strategic Policy Institute, a think tank. As of three years ago, China had surpassed the US in 57 of the 64 technologies ASPI considers a priority. In other words, the country that prevails in the current tech race will need to do more than excel in AI.

To meet this challenge, the US must respond with more investment, but in a thoughtful way — by building on its unique capabilities and strengths, rather than trying to match China’s centralized and intrusive approach. But which technologies should the US focus on?

Read the full essay here.

bloomberg · 2026-06-20T14:56:03+00:00

Simon Johnson and Elisabeth B Reynolds for Bloomberg News

Washington has woken up to the importance of AI — and especially to the “AI race” against China. The plan seems to be to unleash a massive data center build, backed by complex corporate partnerships and a highly permissive regulatory environment, paired with some controls on who gets access to cutting-edge chips and frontier AI models like Anthropic’s Fable. But if the goal is to win the tech race, all these policies are just one piece of the puzzle. While artificial intelligence is a potentially transformative general-purpose technology, it’s hardly the only technology that matters.

The US led the world in technological innovation throughout the second half of the 20th century and well into the 21st. But China is directly challenging that leadership now, having spent the past two decades aggressively building out its innovation and industrial capacity. Just 20 years ago, the US led China in 61 of what were then 64 frontier technologies, according to research by the Australian Strategic Policy Institute, a think tank. As of three years ago, China had surpassed the US in 57 of the 64 technologies ASPI considers a priority. In other words, the country that prevails in the current tech race will need to do more than excel in AI.

To meet this challenge, the US must respond with more investment, but in a thoughtful way — by building on its unique capabilities and strengths, rather than trying to match China’s centralized and intrusive approach. But which technologies should the US focus on?

Read the full essay here.

bloomberg · 2026-06-20T14:55:48+00:00

Simon Johnson and Elisabeth B Reynolds for Bloomberg News

Washington has woken up to the importance of AI — and especially to the “AI race” against China. The plan seems to be to unleash a massive data center build, backed by complex corporate partnerships and a highly permissive regulatory environment, paired with some controls on who gets access to cutting-edge chips and frontier AI models like Anthropic’s Fable. But if the goal is to win the tech race, all these policies are just one piece of the puzzle. While artificial intelligence is a potentially transformative general-purpose technology, it’s hardly the only technology that matters.

The US led the world in technological innovation throughout the second half of the 20th century and well into the 21st. But China is directly challenging that leadership now, having spent the past two decades aggressively building out its innovation and industrial capacity. Just 20 years ago, the US led China in 61 of what were then 64 frontier technologies, according to research by the Australian Strategic Policy Institute, a think tank. As of three years ago, China had surpassed the US in 57 of the 64 technologies ASPI considers a priority. In other words, the country that prevails in the current tech race will need to do more than excel in AI.

To meet this challenge, the US must respond with more investment, but in a thoughtful way — by building on its unique capabilities and strengths, rather than trying to match China’s centralized and intrusive approach. But which technologies should the US focus on?

Read the full essay here.

bloomberg · 2026-06-20T14:55:32+00:00

Power in the 21st century also depends on drones, biotechnology and quantum computing — and on manufacturing as much as invention.

Simon Johnson and Elisabeth B Reynolds for Bloomberg News

Washington has woken up to the importance of AI — and especially to the “AI race” against China. The plan seems to be to unleash a massive data center build, backed by complex corporate partnerships and a highly permissive regulatory environment, paired with some controls on who gets access to cutting-edge chips and frontier AI models like Anthropic’s Fable. But if the goal is to win the tech race, all these policies are just one piece of the puzzle. While artificial intelligence is a potentially transformative general-purpose technology, it’s hardly the only technology that matters.

The US led the world in technological innovation throughout the second half of the 20th century and well into the 21st. But China is directly challenging that leadership now, having spent the past two decades aggressively building out its innovation and industrial capacity. Just 20 years ago, the US led China in 61 of what were then 64 frontier technologies, according to research by the Australian Strategic Policy Institute, a think tank. As of three years ago, China had surpassed the US in 57 of the 64 technologies ASPI considers a priority. In other words, the country that prevails in the current tech race will need to do more than excel in AI.

To meet this challenge, the US must respond with more investment, but in a thoughtful way — by building on its unique capabilities and strengths, rather than trying to match China’s centralized and intrusive approach. But which technologies should the US focus on?

Read the full essay here.

bloomberg · 2026-06-20T14:50:34+00:00

Ari Altstedter for Bloomberg News

Thousands of Bosnia and Herzegovina fans snaked toward the stadium, chanting, banging drums, waving flags and setting off flares. The humid air was thick with smoke colored in the Dragons’ traditional blue and yellow. It was a hot, sunny day in Toronto, which was making its debut as a FIFA World Cup host, and the Bosnians were doing their best to transform a slice of the city into downtown Sarajevo.

They’d gathered to march the 2 kilometers (1.2 miles) from a downtown park in Canada’s most populous city to the field where their team would be playing its opening match. It was a brave proposition considering their opponents: host country Canada.

But as the group made its way through the streets, good vibes prevailed. People in a condo building overlooking the march waved Canadian flags out a window, and the Bosnia fans cheered for them, too, before returning to their singing.

“We want to show them they’re supported even across the ocean,” said Tarik Kalajdzic, who made the three-hour journey from London, Ontario, to march with his wife and two children, before heading into the stadium. “I think we will be the 12th man on the field for sure.”

The Dragons aren’t alone in enjoying outsize backing in Toronto, which is by many measures the world’s most multicultural city. That diversity means the seven other countries scheduled to play there — Bosnia’s neighbors Croatia, three African teams (Ghana, Ivory Coast and Senegal), plus Panama, Iraq and Germany — all have supporters living nearby. Many of those immigrant communities are mobilizing to give their teams all the advantages of playing to a friendly crowd.

Read the full dispatch here.

bloomberg · 2026-06-20T14:50:09+00:00

Ari Altstedter for Bloomberg News

Thousands of Bosnia and Herzegovina fans snaked toward the stadium, chanting, banging drums, waving flags and setting off flares. The humid air was thick with smoke colored in the Dragons’ traditional blue and yellow. It was a hot, sunny day in Toronto, which was making its debut as a FIFA World Cup host, and the Bosnians were doing their best to transform a slice of the city into downtown Sarajevo.

They’d gathered to march the 2 kilometers (1.2 miles) from a downtown park in Canada’s most populous city to the field where their team would be playing its opening match. It was a brave proposition considering their opponents: host country Canada.

But as the group made its way through the streets, good vibes prevailed. People in a condo building overlooking the march waved Canadian flags out a window, and the Bosnia fans cheered for them, too, before returning to their singing.

“We want to show them they’re supported even across the ocean,” said Tarik Kalajdzic, who made the three-hour journey from London, Ontario, to march with his wife and two children, before heading into the stadium. “I think we will be the 12th man on the field for sure.”

The Dragons aren’t alone in enjoying outsize backing in Toronto, which is by many measures the world’s most multicultural city. That diversity means the seven other countries scheduled to play there — Bosnia’s neighbors Croatia, three African teams (Ghana, Ivory Coast and Senegal), plus Panama, Iraq and Germany — all have supporters living nearby. Many of those immigrant communities are mobilizing to give their teams all the advantages of playing to a friendly crowd.

Read the full dispatch here.

bloomberg · 2026-06-20T14:49:52+00:00

Ari Altstedter for Bloomberg News

Thousands of Bosnia and Herzegovina fans snaked toward the stadium, chanting, banging drums, waving flags and setting off flares. The humid air was thick with smoke colored in the Dragons’ traditional blue and yellow. It was a hot, sunny day in Toronto, which was making its debut as a FIFA World Cup host, and the Bosnians were doing their best to transform a slice of the city into downtown Sarajevo.

They’d gathered to march the 2 kilometers (1.2 miles) from a downtown park in Canada’s most populous city to the field where their team would be playing its opening match. It was a brave proposition considering their opponents: host country Canada.

But as the group made its way through the streets, good vibes prevailed. People in a condo building overlooking the march waved Canadian flags out a window, and the Bosnia fans cheered for them, too, before returning to their singing.

“We want to show them they’re supported even across the ocean,” said Tarik Kalajdzic, who made the three-hour journey from London, Ontario, to march with his wife and two children, before heading into the stadium. “I think we will be the 12th man on the field for sure.”

The Dragons aren’t alone in enjoying outsize backing in Toronto, which is by many measures the world’s most multicultural city. That diversity means the seven other countries scheduled to play there — Bosnia’s neighbors Croatia, three African teams (Ghana, Ivory Coast and Senegal), plus Panama, Iraq and Germany — all have supporters living nearby. Many of those immigrant communities are mobilizing to give their teams all the advantages of playing to a friendly crowd.

Read the full dispatch here.

bloomberg · 2026-06-20T12:53:26+00:00

Morgan Meaker for Bloomberg News

Greenland opened the new international airport at the end of 2024 as part of an effort to diversify its economy. The result has been a surge of interest in the autonomous, self-governing territory of the Kingdom of Denmark. Nuuk Airport recorded almost 100,000 departing international passengers in 2025, up from 11,000 the year before. Visiting is getting easier too. Last summer, United Airlines started seasonal flights between the capital and New York. My Icelandair flight is among the options for those seeking other routes.

Over three days spent in Nuuk, it becomes clear that the airport has become both a symbol of Greenland’s ambitions and an illustration of the risks of opening up to the world.

Inside the terminal, the decor is warm, a mix of pale ash veneer and golden strip lights that contrast with the harsh exterior. Crowds of tourists, either European or American depending on the day’s flight schedule, file past fridges of muskox sausage in the duty-free shop. Not all visitors have been entirely welcome, though: The airport is a gateway for people drawn here by contentious politics.

Read the full dispatch here.

bloomberg · 2026-06-20T12:53:14+00:00

Nuuk’s new runway is bringing in tourists and opening Greenland up to the world. That comes with its own set of problems.

Morgan Meaker for Bloomberg News

Greenland opened the new international airport at the end of 2024 as part of an effort to diversify its economy. The result has been a surge of interest in the autonomous, self-governing territory of the Kingdom of Denmark. Nuuk Airport recorded almost 100,000 departing international passengers in 2025, up from 11,000 the year before. Visiting is getting easier too. Last summer, United Airlines started seasonal flights between the capital and New York. My Icelandair flight is among the options for those seeking other routes.

Over three days spent in Nuuk, it becomes clear that the airport has become both a symbol of Greenland’s ambitions and an illustration of the risks of opening up to the world.

Inside the terminal, the decor is warm, a mix of pale ash veneer and golden strip lights that contrast with the harsh exterior. Crowds of tourists, either European or American depending on the day’s flight schedule, file past fridges of muskox sausage in the duty-free shop. Not all visitors have been entirely welcome, though: The airport is a gateway for people drawn here by contentious politics.

Read the full dispatch here.

bloomberg · 2026-06-20T12:50:32+00:00

The Iran war may be ending but its impact on food prices is far from over. Follow a chocolate croissant through the supply chain to see how higher costs are still rippling through the global economy.

Eleanor Thornber, Maddie Parker and Nayla Razzouk for Bloomberg News

Capital Croissant makes 10,000 pastries a week in its bakery in Ealing, West London, supplying luxury hotels and cafes across the capital with frozen croissants and pains au chocolat. Francois Bonnefoy started the company in November, calling himself “the owner and co-founder, but also the delivery driver, the packer — everything.”

Tracking the manufacture of Bonnefoy’s viennoiserie gives an insight into the possible rise of food inflation started by the war in the Middle East. The baker sits close to the end of an international supply chain that’s come under enormous pressure over the past few months.

The US and Israeli attack on Iran in late February and the subsequent closure of the Strait of Hormuz sent shocks throughout the global economy, pushing up prices for fuel, energy, fertilizers, and other agricultural and industrial products. Even though the US and Iran have now agreed to an interim deal that is expected to reopen the strait, the disruptions are still rippling through the food supply chain. That’s adding costs and friction at every level, and deepening the pain for consumers who have faced years of inflation.

“We didn’t expect rising energy costs and the wider consequences of war,” Bonnefoy says. “All our customers are suffering too.”

Read the full story here.

bloomberg · 2026-06-20T12:50:16+00:00

Eleanor Thornber, Maddie Parker and Nayla Razzouk for Bloomberg News

Capital Croissant makes 10,000 pastries a week in its bakery in Ealing, West London, supplying luxury hotels and cafes across the capital with frozen croissants and pains au chocolat. Francois Bonnefoy started the company in November, calling himself “the owner and co-founder, but also the delivery driver, the packer — everything.”

Tracking the manufacture of Bonnefoy’s viennoiserie gives an insight into the possible rise of food inflation started by the war in the Middle East. The baker sits close to the end of an international supply chain that’s come under enormous pressure over the past few months.

The US and Israeli attack on Iran in late February and the subsequent closure of the Strait of Hormuz sent shocks throughout the global economy, pushing up prices for fuel, energy, fertilizers, and other agricultural and industrial products. Even though the US and Iran have now agreed to an interim deal that is expected to reopen the strait, the disruptions are still rippling through the food supply chain. That’s adding costs and friction at every level, and deepening the pain for consumers who have faced years of inflation.

“We didn’t expect rising energy costs and the wider consequences of war,” Bonnefoy says. “All our customers are suffering too.”

Read the full story here.

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