Supply Chain and Logistics

I was unaware of this shift in US policy from reading general media accounts of what’s going on. Gwanhoo Lee identifies clearly the effect on firms playing in the AI marketplace.

As new and better models become available, both China and the US are now going to screen them for national security impact and decide whether to allow sales. The US can no longer claim to be different through allowing competition to determine the best available product.

It’s not surprising as we drift toward a totalitarian government here in the US. First, the national government has taken ownership stakes in high-tech companies such as Intel. Now the government is exercising control over what can be sold in the AI marketplace, so the consumer, particularly the international consumer, no longer determines what’s best through their money choice. It’s national socialism.

Furthermore, the way is now opened for AI decisions by the government to be bought. Back the government position and policies, or you can’t sell your product. If money changes hands to lubricate the decisions, say by support of a White House remodeling or a reflecting Pool redo, we’ve become a third-world country, no different from Angola or Mozambique. (These countries might argue with my characterization, and I agree, it’s egregious of me to make examples of them– but there are lots of examples around the world now.)

While the US leaders can talk the talk, they can’t walk it any more.

The situation is more complicated with AI than with earlier technologies such as relational databases or ERP or TMS/WMS. In those cases, once you purchased, you relied on the vendor to supply maintenance and support. They did it more or less well, and engendered many howls of fury about its quality.

AI is a bit different, because of the learning or training component. An AI product becomes more valuable over time because it trains on a larger and larger set of inputs. The software may improve somewhat, with better algorithms, but also the training set becomes larger, so more refined conclusions can be drawn. You now have two motivations for making a new purchase, or upgrading your subscription.

For users of AI technology purchased from the behemoths, it’s time to focus on exactly what job you want done, and whether some technology will accomplish it. Chasing the latest new version may not serve your specific goals. Your experts need to be able to tell you why results, financial or business, will be measurably better with a new model. Mostly this has nothing to do with the perceived security risks to the US tech environment. but corporate execs can control it much more closely than by following the AI news.

Gwanhoo Lee July 22, 2026

https://www.linkedin.com/pulse/30-day-gate-gwanhoo-lee-xvlue