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Palmer Luckey Warns US Lead Over China In AI Is ‘Extremely Small’

by Daily Caller News Foundation
March 16, 2026 at 3:35 pm
in News, Wire
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Palmer Luckey Warns US Lead Over China In AI Is ‘Extremely Small’

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Daily Caller News Foundation

Anduril CEO Palmer Luckey said America was barely winning against China in the artificial intelligence (AI) race during a Monday episode of “The Axios Show.”

While the United States and China compete to develop the most advanced AI, their different economies, governments and ambitions present both advantages and disadvantages, experts told the Daily Caller News Foundation in 2023. Luckett told Axios defense reporter Colin Demarest on the show that America’s small lead was due to China’s success at duplicating U.S. models and its undemocratic government.

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“It’s extremely small, because China’s been doing a very good job of distilling our models, copying a lot of our technology, leveraging open-source AI advancements and getting those advancements into fielding, not just with the military, but also their police state, their surveillance apparatus, much, much faster than the United States has,” Luckey said. “I’m not saying we need to build a police state, a surveillance apparatus. I’m just recognizing that China has the will at the top to push these things out much faster than the United States.”

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“And you can criticize authoritarian regimes while still recognizing that certain structural advantages exist, and China is maximizing those structural advantages to push AI into their entire government and its fingers, I think, faster than the United States,” he continued.

Anduril, a defense technology company, secured a $20 billion contract with the Department of War on Saturday.

“I would say the Department of War is the furthest along in pushing AI into a lot of these. I mean, like they’re using AI right now in this Iran operation to great effect,” Luckey added. “Try to name another part of government that is leveraging AI that effectively … you are not seeing Department of Agriculture using AI as effectively as the Department of War.”

“You’re certainly not seeing the Department of Education using it as effectively as they could,” he said. “It’s probably like Department of War then maybe Department of Energy are probably the two that I would say are in the lead.”

Americans seem divided over the expanding presence of AI and data centers nationwide. Opposition to the construction of data centers is rising amid worries about electricity and environmental impacts, Time reported in February.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].

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