In a rare moment of alignment, former Google CEO Eric Schmidt and Tesla CEO Elon Musk are now voicing remarkably similar concerns about the United States’ weakening competitive position against China. Although the two tech leaders have historically clashed on artificial intelligence safety, regulation, and development strategies, recent remarks from Schmidt in December 2025 closely echo warnings Musk has been issuing for years particularly around energy infrastructure, AI strategy, and workforce intensity.
The “Electricity Gap” Threat to U.S. AI Leadership
Speaking at the Harvard Kennedy School’s Institute of Politics in late December 2025, Eric Schmidt raised alarms about what he described as America’s growing “electricity gap.” According to Schmidt, the U.S. has produced “essentially no new electricity” in recent years due to regulatory bottlenecks and slow permitting processes. In contrast, China is rapidly expanding its power capacity through massive investments in renewable energy and nuclear power.
Schmidt emphasized the scale of China’s growth, noting that the country adds roughly one gigawatt of electricity to its grid every single day. This surplus, he argued, gives China a decisive advantage in powering energy-hungry AI data centers. His comments directly mirror Elon Musk’s May 2025 warning that the U.S. energy crisis represents a “major competitive disadvantage,” with Musk pointing out that China’s solar capacity alone could power nearly half of the United States.
Open-Source AI as a Geopolitical Weapon
Another major point of agreement involves the global AI race. Schmidt has recently expressed deep concern over what he called a “bizarre outcome” in which China could win by default through open-source dominance. While leading U.S. AI models from companies like OpenAI and Google remain closed-source and expensive, Chinese firms such as DeepSeek and Alibaba are releasing powerful open-source alternatives.
Schmidt warned that countries across the Global South may adopt Chinese AI models simply because they are free and accessible. Over time, this could allow China to define global AI standards, architectures, and norms—effectively “writing the rules of the road” for modern digital life. Musk has long cautioned that slow U.S. responses to AI development could allow China to set the global agenda.
Productivity, Culture, and the “996” Debate
Schmidt also aligned with Musk on the controversial issue of work culture. Speaking on the All-In podcast, Schmidt argued that U.S. tech companies risk falling behind by prioritizing remote work and work-life balance. He contrasted this with China’s “996” work culture 9 a.m. to 9 p.m., six days a week suggesting that winning the AI race requires difficult tradeoffs. Musk has been a vocal critic of remote work and has repeatedly called for “hardcore” effort from U.S. tech workers.
A Strategic Wake-Up Call
Together, Schmidt and Musk’s converging views underscore a growing consensus among tech leaders: without faster energy expansion, stronger open-source AI support, and higher productivity, the U.S. risks losing its technological edge to China in the coming decade.
