tech
February 18, 2026
Microsoft’s Brad Smith says U.S. tech should ‘worry a little’ about Chinese firms' government subsidies
The Microsoft president said American firms will have to compete with subsidies provided by Beijing to Chinese companies.
TL;DR
- Microsoft President Brad Smith warns U.S. tech companies about Chinese government subsidies in the AI race.
- He cited China's past success in the telecommunications market using state subsidies to support companies like Huawei and ZTE.
- Chinese AI companies receive government support through a national investment fund and vouchers for cheaper energy.
- Smith believes these subsidies could allow Chinese firms to offer lower-cost AI models attractive to developing nations.
- He stated that other companies must compete with these subsidized offerings, with support from their own governments.
- Microsoft is investing $50 billion by the end of the decade to bring AI to developing countries.
Continue reading the original article