Washington tells allies to pick a side in the AI race

• The State Department drafted a letter demanding 35 nations choose between the U.S.-led Pax Silica framework and China’s rival AI coalition.
• Kazakhstan is the only country known to have joined both AI blocs, sparking U.S. fears of dual loyalty and warnings against mixed participation.
• The Pax Silica initiative aims to secure chips, AI models, and critical minerals while cutting dependence on hostile suppliers.
• China launched its own World Artificial Intelligence Cooperation Organization, promoting open-weight tech as an alternative to U.S. influence.
• The ultimatum lands while Washington’s own AI policy remains unsettled, including a safety review that exempts open-weight systems.

The State Department has prepared a letter informing 35 signatory countries that they must choose between aligning with Washington’s Pax Silica initiative or Beijing’s rival artificial intelligence framework, escalating the technology rivalry between the world’s two superpowers. The internal draft, reviewed by Reuters and described by a U.S. official, comes amid growing alarm over Kazakhstan becoming the only known nation to have joined both coalitions.

The letter argues that dual membership undermines commitment and warns against participating in initiatives with conflicting expectations, though it does not name China directly. The correspondence, undated and not yet sent, addresses signatories of the June AI Opportunity Statement and signals an aggressive push to starve China of critical resources in the race for AI dominance.

Pax Silica coalition demands exclusive loyalty from tech partners

The Pax Silica framework, launched last year, was built to lock down the supply of chips, AI models and the raw minerals behind them, and to cut member nations’ dependence on hostile suppliers. Approximately two dozen countries have joined, including Japan, Australia, South Korea, and Kazakhstan, a country believed to sit on large deposits of the minerals modern electronics require.

The framework provides members access to shared investment opportunities in AI-related projects, while the AI Opportunity Statement represents a symbolic commitment to a “common purpose” and “shared vision” with the United States. The draft letter emphasizes that signing the Pax Silica Declaration requires genuine commitment rather than casual participation, urging countries to “choose deliberately” on AI cooperation.

The pressure campaign coincides with Chinese President Xi Jinping’s July launch of the World Artificial Intelligence Cooperation Organization, which promotes China’s open-weight technology as an alternative to U.S. influence. So far Kazakhstan stands alone in signing both, but Washington plainly fears it will not stay that way. The United States views dual participation as untenable.

“It’s difficult to see how a country can credibly position themselves as trusted partners in one technology ecosystem while simultaneously signing up for an initiative designed by China to advance a competing vision for AI,” a U.S. official told Reuters.

Kazakhstan’s dual membership raises red flags across Washington

Kazakhstan’s participation in both the Pax Silica framework and China’s coalition has triggered particular concern among U.S. officials. The Central Asian nation, touted by Washington in June as the first country in the region to join Pax Silica, is a promising supplier of the minerals that feed advanced manufacturing. These resources have become increasingly valuable as China wields its near-monopolies over critical minerals as leverage in the ongoing tariff war initiated by President Donald Trump. The United States has ramped up efforts to source minerals domestically and from allied nations, making Kazakhstan’s position strategically significant.

The timing is not accidental. Chinese open-weight systems have closed much of the gap on the paid, proprietary offerings from American firms like OpenAI and Anthropic, and the technology’s newer tricks — including hacking without a human at the keyboard — have governments everywhere scrambling. Beijing, for its part, is mulling limits on foreign access to its own top models.

China dismisses ultimatum, warns of stifling global innovation

China’s embassy in Washington responded to the draft letter by denouncing the politicization of trade and technology issues, saying such moves would “only stifle global AI advances and serve no one’s interests.” The State Department declined to comment on what it called “purportedly leaked internal documents,” while Kazakhstan’s embassy did not respond to requests for comment. Reuters could not determine when the letter might be sent or whether it would be amended before distribution.

Whether Washington has earned the right to issue ultimatums is another question. The New York Times reported this week that the administration’s new safety review for AI models exempts open-weight systems, which is precisely the category Chinese labs are flooding the market with. Export controls on Beijing have been loosened, tightened and loosened again, while the harshest restrictions yet imposed on any AI firm landed on Anthropic, an American company. Allies are being asked to commit to a strategy the government drafting it has not managed to settle on itself.

Sources for this article include:

CNBC.com

NYTimes.com

Reuters.com