Two AI Blocs, One Cold Choice

Neutral countries face a loyalty test as US and China build rival AI blocs State Department draft letter warns 35 nations that joining China's WAICO could cost them Pax Silica access India's AI sovereignty push goes beyond data localisation, experts at KPMG panel say A Eye on AI - 12:30 PM The US-China AI rivalry is now forcing neutral countries to pick a side. An Associated Press report details how Washington's Pax Silica and Beijing's World Artificial Intelligence Cooperation Organization (WAICO) are pulling middle powers in opposite directions, with Kazakhstan's dual membership alarming American officials. The State Department has reportedly drafted a letter to 35 signatories of the AI Opportunity Statement warning that joining WAICO could cost them access to advanced US chips and cloud contracts. Meanwhile, experts at a KPMG session in India argue that true digital sovereignty requires control over infrastructure, models, and talent — not just local data. In business, Google's AI Overviews are reshaping publishing: a 2024 Press Gazette investigation found the feature appeared in nearly a quarter of news-related searches, while the News/Media Alliance called it 'catastrophic' for traffic. This episode examines the geopolitics of AI, the loyalty pressures on smaller economies, and how AI search is upending the economics of news. Sources: - tech-insider.org: https://tech-insider.org/ca/us-china-ai-blocs-pax-silica-waico-2026/ - apnews.com: https://apnews.com/article/china-us-ai-blocs-9974a3e5dc955a93935d131a4aeb8886 - shattered.io: https://shattered.io/us-china-ai-blocs-waico-pax-silica-29-founders-35-warned-2026/ - ciol.com: https://www.ciol.com/tech/india-ai-sovereignty-data-centres-networks-12750138 - The Verge AI: https://www.theverge.com/column/1017983/google-ai-search-online-publishing https://www.spreaker.com/podcast/a-eye-on-ai--7245888