AI Isn't a '90s Internet Moment—It's a '60s Computing Revolution Waiting for the Right Company

The Global Race for Artificial Intelligence

Artificial intelligence is poised to reshape the global economy in ways that are both profound and unprecedented. As countries race to establish leadership in this transformative field, the need for international cooperation and standardization becomes increasingly critical. China has taken a bold step by releasing a comprehensive global action plan for artificial intelligence, emphasizing collaboration with the Global South to promote AI standards worldwide. This move highlights the growing importance of shaping the future of technology through shared frameworks and mutual development.

AI’s potential impact on every aspect of life and business is immense. However, there are concerns that it could become another technological bubble, much like the internet boom of the 1990s. While the internet eventually became a cornerstone of modern society, its early days were marked by significant challenges, including high costs, limited access, and technical barriers. Today, as AI advances, similar hurdles threaten to stifle innovation and limit the benefits of this powerful technology.

Barriers to Accessing AI Infrastructure

One of the primary obstacles to widespread AI adoption is the difficulty in accessing critical infrastructure. The current landscape is characterized by three major issues: crushing costs, extreme concentration of resources, and insufficient capacity. For companies looking to leverage large-scale computing power, the process often involves long-term contracts with major cloud providers—options that are far beyond the financial reach of many startups and academic institutions. Additionally, data transfer fees create artificial barriers that hinder competition, regardless of technical merit.

The success of the internet was largely due to the adoption of common standards, such as TCP/IP, which allowed any computer to communicate with any other. This open framework enabled rapid innovation and the emergence of new business models. To ensure that AI follows a similar trajectory, we must establish global standards and open exchange mechanisms that make accessing AI as seamless as sending a packet from one device to another.

Lessons from the Past

Looking back at historical transitions in computing can provide valuable insights into the current state of AI. In the 1940s, computing power was so expensive that only governments could afford it, with room-sized machines housed in hangars. By the 1960s, the transition to personal computers began, but access remained limited to those with significant resources. Today, our smartphones are more powerful than those early supercomputers, thanks to the commoditization of hardware and the development of open operating systems.

This evolution was driven by companies like IBM, which played a key role in making computing more accessible, and Microsoft and Linux, which established essential software standards. These changes took decades, but today's technology moves at an accelerated pace, demanding a faster response to stay competitive.

A New Era for AI

Currently, AI is in a position similar to computing in the 1960s—powerful but accessible only to those with substantial resources. To replicate the success of the PC revolution, we need an "IBM PC moment" for AI, featuring open standards and a robust exchange system. This approach would allow for rapid innovation and broader access to AI technologies.

However, this shift cannot rely solely on government mandates. It requires market forces guided by open standards that make AI resources truly accessible and interoperable. When companies can easily compare compute options and move workloads between providers, competition drives efficient pricing and improved service. When developers can access standardized AI infrastructure without months of planning, innovation accelerates.

Strategic Implications

This approach serves America’s strategic interests by strengthening the democratic technology ecosystem. When allies and adversaries can adopt U.S.-developed AI standards and infrastructure, it promotes American values and influence. President Trump’s decision to allow China to purchase NVIDIA H20 processors helps encourage Chinese developers to build on American technology, creating long-term benefits.

The government also has a role to play in ensuring competitive markets. Strategic compute reserves could provide emergency capacity during crises, similar to the strategic oil reserve. Procurement policies should prioritize small and medium enterprises over concentrated providers, especially in government contracts. Standards development is crucial to prevent fragmentation and maintain American technology leadership.

A Call to Action

The time for swift action is now. President Trump’s AI Action Plan positions the U.S. for success, but China has been working on its strategy for years. Delivering on the promise of AI for the Western world requires not only a government commitment to leadership but also the creation of market conditions where American innovation can thrive—open, competitive, and accessible to all.