Sebastian Mallaby said the pace of artificial intelligence progress is accelerating as nations and firms compete for global supremacy.

This competition is critical because AI leadership influences geopolitical power and economic stability. The race involves not only software development but also the physical infrastructure required to power these systems.

Mallaby, a senior fellow for international economics at the Council on Foreign Relations, said the struggle is intense in an interview aired on May 19, 2026 [1]. He focused on the position of Google within the AI race and the systemic challenges facing the industry, specifically the global chip shortage.

The struggle for dominance is characterized by a breakneck pace of innovation. Mallaby said the ability to secure high-end semiconductors is a primary bottleneck for firms attempting to scale their models. Without a stable supply of chips, the theoretical progress of AI cannot be translated into practical, large-scale deployment.

In addition to the corporate battle, Mallaby has examined the individual innovators driving these shifts. In an interview on April 6, 2026 [2], he discussed his work in "The Infinity Machine," which explores the journey of AI innovator Demis Hassabis. This focus on the human element of innovation underscores how specific technical breakthroughs can shift the balance of power between competing entities.

The economic stakes are tied to the ability of a firm or nation to integrate AI into its core infrastructure. Mallaby said the race is not merely about creating a better chatbot, but about who controls the foundational technology that will define the next era of global productivity.

“The race is not merely about creating a better chatbot, but about who controls the foundational technology.”

The intersection of AI software development and hardware availability creates a strategic vulnerability. Because AI supremacy depends on physical chipsets, the geopolitical struggle is as much about supply-chain logistics and semiconductor manufacturing as it is about algorithmic brilliance.