The AI and semiconductor regulatory landscape in the United States is being actively defined by the balance of power between the Magnificent 7 companies and the US government. As the US government struggles to comprehend the rapidly evolving tech landscape, they rely on the M7 to assess its development. The state-business dyad is intensified by the structural backdrop of US-China relations, where both great powers are vying for the dominance of AI and semiconductors. I argue that the M7 and the US government are engaged in a non-linear relationship that's both competitive and collaborative. By examining each M7's operations in China, I demonstrate how their activities inform US policymakers about which kinds of technologies could risk improving China's commercial and defense sectors. Subsequently US policymakers enact regulations to restrain the M7 companies from offering those technologies in China. As China continues to make breakthroughs in AI innovation and semiconductor production, M7 companies will have stronger incentives to operate in this growing market, prompting US policymakers to impose more targeted restrictions.
Megan Cui (Sun,) studied this question.