US commission proposes ‘Manhattan Project-like’ initiative for AI

A US congressional commission has called for a “Manhattan Project-like” initiative to accelerate artificial intelligence (AI) development, urging Congress to grant the executive branch sweeping, multiyear contracting authority to fund advancements in AI, cloud computing, and data centers.

The bipartisan US-China Economic and Security Review Commission (USCC) issued the recommendations in a 793-page report on Tuesday, highlighting the growing urgency to outpace China’s rapid strides in emerging technologies, including AI, quantum computing, and biotechnology.

“Congress should establish and fund a Manhattan Project-like program dedicated to racing and acquiring an Artificial General Intelligence (AGI) capability,” the report stated, drawing parallels to the WWII-era government project that developed the first atomic bombs.

“Provide broad multiyear contracting authority to the executive branch and associated funding for leading artificial intelligence, cloud, and data center companies and others to advance the stated policy at a pace and scale consistent with the goal of US AGI leadership,” the report further added as a suggestion to Congress.

The report also advised the Secretary of Defense to designate AI projects as having the highest national priority, underscoring the strategic importance of staying technologically ahead of China to protect US economic and military interests.

“Direct the US secretary of defense to provide a Defense Priorities and Allocations System “DX Rating” to items in the artificial intelligence ecosystem to ensure this project receives national priority,” it stated.

A “DX Rating” is assigned to programs of highest national priority.

The USCC, established in 2000 to monitor and report on US-China trade and economic relations, issued its latest report amid mounting geopolitical tensions and a race to dominate the technologies of the future.

Tech rivalry with global implications

The commission warned that China’s technological progress, if left unchecked could threaten US deterrence in the Pacific region and destabilize the global balance of power. “China’s advancements could erode the United States’ economic and military position and tip the global balance of power,” the report said.

The US has already taken steps to limit China’s access to critical technologies. On Monday, the Treasury Department finalized a rule restricting US investments in Chinese AI, quantum computing, and semiconductor sectors — a move building on President Joe Biden’s executive order last year aimed at curbing the export of technologies that could bolster China’s military and intelligence capabilities.

Tuesday’s report also detailed tensions between the two nations over issues such as sanctions on Chinese officials, restrictions on semiconductor imports, and national security concerns surrounding the Chinese-owned social media platform TikTok.

“Despite a bilateral agreement reached in late 2023 to pursue limited cooperation on military communication, climate change, countering fentanyl and other drugs, artificial intelligence (AI), and people-to-people ties, China has continued its efforts to counter or weaken US policies without changing its own behavior,” the report observed.

Generative AI is central to the recommendations of the report, which pointed out that while the US currently leads development in the domain by over a year, “Chinese companies are making a concerted effort to develop generative AI models similar in sophistication to those of US companies.”

The USCC report also emphasized the US’ need to maintain leadership in developing Artificial General Intelligence (AGI) — AI systems capable of performing any intellectual task that a human can do.

The proposed initiative echoes the strategic and national security urgency of the original Manhattan Project, highlighting the role of advanced technology in shaping global power dynamics.