OPINION — Last month, the White House released its AI Action Plan, followed by an Executive Order aimed at promoting the export of the “American AI technology stack.” These actions come six months after Chinese startup DeepSeek surprise launched its highly capable, open source AI model and undercut confidence in American AI superiority over China.
Taken together, the White House’s approach doubles down on a “race to achieve global dominance in artificial intelligence,” while recognizing that to win this race we need broad global adoption of U.S. AI technology. But it appears the United States has not fully absorbed the lesson of DeepSeek for global technology competition.
Leading U.S. AI companies continue to tout their superior sophistication. But during my time at the White House and State Department promoting U.S. cyber and tech abroad, I observed that most countries aren't looking for the world's most advanced AI. They want AI that’s good enough to meet basic needs and is compatible with their existing systems. They’re looking for simple, turn-key solutions. DeepSeek allows China to provide that – and edge out American companies in dozens of countries.
In acknowledging the need for a “full stack” strategy, the White House has taken an important first step in supporting U.S. industry. But success will rely on whether policymakers can shift their focus away from the most glamorous, frontier tech, and devote energy and resources to a more holistic approach. To reclaim global AI leadership, the United States must become a one-stop-shop for the digital infrastructure AI relies on.
Why the Full Stack Matters
The most advanced AI companies still depend upon basic tech infrastructure, known as the digital stack, to deliver their services to the public. These include subsea cables, data centers, telecommunications, and satellites. Long before leading proprietary models like ChatGPT and Claude entered the picture, the United States and China competed to provide that digital foundation to developing countries.
Typically, American companies offer superior, more secure technology at higher prices than Chinese counterparts, who rely on state subsidies and decades of intellectual property theft to keep costs low. But China’s other comparative advantage has been its integrated solutions: Huawei bundles 5G with other offerings, like cloud services in Egypt or cybersecurity training in Indonesia, which comprehensively address developing countries’ needs. Often, countries decide that cost efficiency and the convenience of a package deal outweigh the risks of Chinese technology, like spying, authoritarian propaganda, and the threat of technology shutdowns as a tool of Chinese government coercion.
With DeepSeek's R1, the Chinese package now offers a powerful open-source large language model to customers already reliant on Chinese systems. For these countries, DeepSeek may be good enough to suit their needs; moreover, it doesn’t require the purchase of more trustworthy and costly digital infrastructure necessary to safely run more advanced American models.
China winning the AI race in the developing world brings significant risk for U.S. tech and commercial leadership as well as national security. Broad adoption of Chinese technology would give Chinese companies – and by extension the Chinese government – vast troves of data and favorable market access, with potential economic, political, and military advantages.
Moreover, as countries’ critical infrastructure - such as power grids, telecom networks, and ports - becomes reliant on Chinese technology, they become more vulnerable to Chinese coercion on matters of security, sovereignty, and trade. China is already using this influence to shape policy norms and technical standards for AI use around the world; it could also become a point of leverage for trade deals, critical mineral access, and port access, as we’ve seen with traditional infrastructure projects.
Sign up for the Cyber Initiatives Group Sunday newsletter, delivering expert-level insights on the cyber and tech stories of the day – directly to your inbox. Sign up for the CIG newsletter today.
Building a “Full Stack” Strategy that Meets the Moment
Despite these challenges, the United States still has advantages. Most countries prefer the quality and security of U.S. technology, including our leading AI models. But we need smart policies and an affirmative vision to effectively compete. Previous efforts have suffered from lack of follow-through, and relevant agencies will struggle with understaffing and uncertain resourcing in critical areas.
Last month’s Executive Order provides a good starting point; but as is so often the case, implementation will be the test. The executive order lays out a long missing mechanism for structured coordination between the federal government and U.S. technology companies, whose size, scale, and reach provide crucial advantages as we compete on the global stage – advantages that should be taken into consideration even as we review competition policies at home.
The order also references resources to level the playing field against unfairly advantaged Chinese competitors. Well-timed cybersecurity support, strategic loans from the Development Finance Corporation, access to planned undersea cable buildouts, and foreign assistance can be vital tools for advancing a trusted U.S. tech ecosystem. But these mechanisms can only succeed if the Administration signals to Congress that appropriately resourcing them is vital to advance U.S. interests – a prospect that is unclear at the moment.
Finally, we need to organize cyber, digital, and technology diplomacy as an integrated mission across government to support U.S. business. Last month’s order affirms the role of the Economic Diplomacy Action Group (EDAG) chaired by the Secretary of State to fill this function. But the Secretary of State’s dual role as National Security Advisor means limited bandwidth to carry forward this effort, and the State Department recently laid off many of its AI and technology experts and reorganized its cyber bureau.
A meaningful path forward will require agencies, especially the State Department, to address these gaps either through new hires or rehires, and delegate EDAG leadership to an official with the bandwidth and authority to coordinate disparate efforts across the government.
American AI leadership depends not just on recognizing the need for a “full stack” strategy, but meaningfully executing. If we can truly prioritize digital infrastructure as a foundational necessity for adoption of U.S. AI tech, we can meet this pivotal moment.
The Cipher Brief is committed to publishing a range of perspectives on national security issues submitted by deeply experienced national security professionals.
Opinions expressed are those of the author and do not represent the views or opinions of The Cipher Brief.
Have a perspective to share based on your experience in the national security field? Send it to Editor@thecipherbrief.com for publication consideration.
Read more expert-driven national security insights, perspective and analysis in The Cipher Brief
