Big Shots Weigh In: US vs. China AI Smackdown

<h2>Big Tech vs. DeepSeek: Takeaways from CNBC’s Singapore Summit</h2>

<p>Tech heavyweights Marc Benioff, Ray Dalio and Joe Tsai shared the stage at CNBC’s Singapore conference last week to debate the United States–China AI race. Their views diverged sharply on whether massive data-centre spending still makes sense now that lean, open-source models such as China’s DeepSeek R1 have arrived.</p>

<h3>Benioff: Question the Cash Bonfire</h3>

<p>Salesforce founder Marc Benioff chided Silicon Valley for what he called a “hypnosis” over ever-larger server farms. Billions flow into GPU clusters, yet DeepSeek R1—a lower-cost, open-source model—delivers strong results without the same hardware bill.</p>

<blockquote>
  <p>“Rethink it. What’s the point of this cash bonfire?” — Marc Benioff</p>
</blockquote>

<h3>Dalio: Chips Still Give the U.S. a Narrow Edge</h3>

<p>Bridgewater Associates founder Ray Dalio noted that U.S. firms still lead in advanced chip design, though China is close behind. He argued that real value comes from applying existing AI tools to business rather than chasing ever-bigger training runs.</p>

<h3>Tsai: Open Source Levels the Field</h3>

<p>Alibaba co-founder Joe Tsai downplayed the nation-versus-nation framing, calling DeepSeek an open-source “haymaker” that lowers the barrier to entry for developers worldwide. With free code available, he said, innovation will come from a swarm of contributors, not just trillion-dollar platforms.</p>

<h3>Our Take</h3>

<p>Benioff is partly right: gigantic data-centre spend can look excessive when stripped-down models perform well. Dalio’s chip warning also holds—design leadership still matters. Yet Tsai highlights the real disruptor: open-source AI widens access and may recast the contest as a global free-for-all rather than a simple U.S.–China duel. Merchants should watch projects like DeepSeek; lean challengers are drawing blood in 2025’s AI brawl.</p>

<h3>References</h3>
<ul>
  <li>Lee Chong Ming and Shubhangi Goel (12 Mar 2025). <em>Marc Benioff, Ray Dalio, and the co-founder of Alibaba talk U.S. and China AI</em>. Business Insider. <a href="https://www.businessinsider.com/tsai-alibaba-dalio-marc-benioff-salesforce-china-us-ai-deepseek-2025-3">Available online</a>. Accessed 12 Mar 2025.</li>
</ul>

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