Elon Musk Says U.S. AI Dominance Hinges on Manufacturing Strength Over China

Elon Musk delivered a stark but critical message this week about the future of artificial intelligence and how America can win the AI race against communist China. In an interview on Senator Ted Cruz’s "Verdict" podcast, Musk made it clear: the key to long-term U.S. dominance isn't just technological leadership it’s manufacturing control.

Musk, a pioneer in both AI and manufacturing, predicted a near-future reality where AI surpasses human cognitive abilities "In 10 years, probably AI could do anything better than a human can cognitively," Musk stated. He painted a world where “tens of billions of robots” will provide goods and services cheaply, fundamentally transforming economies worldwide.

However, Cruz got to the heart of the geopolitical stakes, bluntly asking: How do we ensure it’s American-made AI not Chinese-controlled AI that leads the way?

Musk’s answer was clear "It will be a function of who controls the AI chip fabrication, the factories that make the AI chips. If more of them are controlled by China, then China will win."

Key takeaways:

• The U.S. holds an edge in the short term, but China is rapidly expanding control over critical manufacturing infrastructure, especially semiconductor and AI chip production.

• Control of AI factories not software will determine global power in the coming decades.

• A robust, American-controlled manufacturing base is essential to prevent China from seizing AI dominance.

Musk’s warning comes as no surprise to those watching the Biden administration’s continued weakness on industrial policy. While Biden pushes green energy fantasies and sends billions overseas, China aggressively invests in factories, raw materials, and semiconductor supply chains.

Consider these facts:

• China currently manufactures over 70% of the world’s semiconductors.

• Taiwan, vulnerable to Chinese aggression, produces over 90% of the world’s most advanced AI chips.

• Biden’s CHIPS Act, while costly, has yet to meaningfully reverse America’s dependency on foreign fabrication.

Under President Trump, the focus was squarely on reshoring American manufacturing, imposing tariffs, and holding China accountable. Musk’s message reinforces why that approach must return because without control over production, software innovation alone won’t save America’s technological edge.

If America wants to lead the AI revolution and ensure those AI-powered machines serve freedom, not tyranny it’s time to rebuild the manufacturing backbone Trump prioritized.

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