Treasury Secretary Scott Bessent delivered a stark warning about America’s artificial intelligence race with China, arguing that surrendering the technological lead to Beijing could overwhelm virtually every other national security priority.
During a Breitbart News “State of the Economy” policy discussion, Bessent was asked how the United States could continue building the massive infrastructure required for AI while addressing growing resistance to data centers in communities across the country.
His answer was unequivocal.
“Beating China — there is no day after tomorrow if China wins at this,” Bessent said. “If they were to pull ahead of us on AI, then nothing else matters.”
America Has the Lead. Bessent Says It Cannot Waste It.
Bessent credited America’s current advantage to a unique combination of technology, advanced chips, capital and entrepreneurship.
He pointed to the explosive growth of Anthropic as an example, noting that the company began with just eight people working on laptops in San Francisco during the COVID era and could potentially achieve an enormous valuation when it goes public.
But Bessent also had harsh words for the companies building the infrastructure behind the AI boom.
He said data center operators, hyperscalers and major AI companies have done a “horrendous job” communicating with the communities affected by their expansion. He gave the industry a “D-minus” for its handling of the issue and acknowledged that public backlash isn’t entirely without justification.
Bessent nevertheless argued that some of the organized opposition surrounding data centers includes Chinese propaganda efforts, while insisting the industry still needs to take responsibility for explaining what it is building and why.
AI Could Make Tiny Companies Powerful
Bessent also pushed back against the idea that AI’s economic story is simply one of machines replacing American workers.
Instead, he said companies using AI are hiring while new startups are proliferating.
He offered the example of an employee at a 200-person architecture firm who might once have needed 12 or 15 employees to successfully launch a competing business. With AI, Bessent argued, that same entrepreneur could potentially build a viable operation with only one, two or three people.
That could dramatically lower the barrier to starting a business while giving small teams capabilities once reserved for much larger corporations.
Bessent also pointed to potential breakthroughs in medicine and disease treatment as areas where ordinary Americans could ultimately benefit from the technology.
‘We Can’t Pause’
Perhaps Bessent’s clearest message was aimed at politicians calling for Washington to slow down AI development.
He specifically criticized Sen. Bernie Sanders’ suggestion of a one-year pause.
“We can’t pause,” Bessent said. “You can’t, because the Chinese won’t pause. Even the North Koreans, they won’t pause.”
Bessent acknowledged that China continues attempting to copy or “distill” American AI advances, but argued that copying the leader does not automatically put Beijing ahead.
For now, America remains in front.
The question is whether it intends to stay there.
Bessent’s argument is straightforward: America can debate how AI is developed, demand more accountability from the companies building its infrastructure and insist that ordinary Americans share in its benefits.
What it cannot afford to do, he says, is stop racing while China keeps running.