Billionaire Ray Dalio Anticipates U.S. Manufacturing won’t Compete with China

Ray Dalio argued that China will continue to have an advantage over the United States in AI chip manufacturing for the foreseeable future. "We're not going to have competitive advantages in those things," the billionaire told Tucker Carlson last month. However, Dalio believes that the United States will continue to lead the AI development race in terms of innovation and research.

The United States may have the brains to lead AI chip development globally, but China will continue to have the muscle to manufacture applications for those chips, and this will not change anytime soon, billionaire investor Ray Dalio believes.

China has an advantage over the United States in mass-producing semiconductor chips and developing AI applications, despite the fact that American chips are slightly more effective, the Bridgewater Associates founder explained on an episode of the Tucker Carlson show last month.

The AI development war between the United States and China has heated up. In January, Chinese dark horse developer DeepSeek unveiled an open-source model that claims to be faster and less expensive to produce than OpenAI's o1 model. Despite the Biden administration's sweeping export controls aimed at restricting access to key chip manufacturing equipment and curbing domestic chip production, DeepSeek's claims are being questioned by some experts.

The United States has pushed to increase chip manufacturing at home. According to multiple reports, the Taiwan Semiconductor Manufacturing Co. (TSMC), which manufactures the majority of the world's advanced semiconductor chips, is set to announce a $100 billion investment in chip plants in the United States as part of President Donald Trump's plan to push the country ahead of AI competition.

Dalio described AI as a "war no country can lose" in January, with winning "more important than profits.".