Chinese artificial intelligence companies have established two new industry alliances aimed at developing a domestic AI ecosystem to reduce reliance on foreign technology. This move comes in response to U.S. export restrictions on advanced Nvidia chipsets, which have limited China's access to key computing components. Despite these restrictions, China has taken a leading position in AI research, intensifying the technological rivalry between China and the United States. The U.S. may reconsider its strategy in the competition for AI dominance as the global AI race accelerates, with potential geopolitical implications including cyber operations, coercion, diplomatic pressure, and military considerations. The rivalry reflects divergent approaches to AI development and highlights the increasing governmental push worldwide to adopt and advance AI technologies.