Early OpenAI Investor: The Chilling Reason Why U.S. Must Win AI Race Against China

Venture capitalist Vinod Khosla has issued a grave warning, declaring that the United States is in a do-or-die AI race against China, with the specter of worldwide communist ideology looming if America falters. Khosla cautioned that failing to lead in AI could allow China’s authoritarian regime to impose its oppressive vision globally.

“There’s another kind of risk I worry about even more” Khosla told X interviewer Mario Nawfal. “China can use AI in cyber warfare or physical warfare on the battlefield, but the one I worry about even more is the economic power that AI will give a nation that moves fast and wins the race.”

EXCLUSIVE: OPENAI’S EARLIEST INVESTOR —THE REAL AI THREAT ISN’T WAR, IT’S INFLUENCE

Forget missiles. The most powerful weapon China could wield with AI is influence.@vkhosla:

“By 2030, it’s easy to imagine China offering free doctors, free tutors—using AI-driven services… https://t.co/RnuW2yyI52 pic.twitter.com/OABuiQc1Da

— Mario Nawfal (@MarioNawfal) April 22, 2025

“One you have economic power, I think it’s trivially easy by 2030 to imagine China providing free doctors to the whole planet, free tutors to every child on the planet, and using, essentially, free goods and services to spread their political philosophy.”

Khosla, who co-founded Sun Microsystems and later became one of OpenAI’s earliest backers through his venture capital firm Khosla Ventures, went a step further by China’s possession of powerful AI a potentially deadly threat to the world.

“The biggest risk is AI in Chinese hands—or any bad hands. The more powerful the entity, the bigger the risk,” the Indian-American technologist said. “If somebody used a nuclear weapon, it’s verifiable. AI, when used, may not be verifiable.”

.@vkhosla: “The biggest risk is AI in Chinese hands.”

“If somebody used a nuclear weapon, it’s verifiable. AI, when used, may not be verifiable.”pic.twitter.com/z1azm2xsgo

— Josh Caplan (@joshdcaplan) April 23, 2025

President Donald Trump has made it a key priority for the U.S. to dominate AI.

In January, Trump signed an Executive Order titled “Removing Barriers to American Leadership in Artificial Intelligence,” aimed at solidifying U.S. dominance in AI by revoking what his administration deemed restrictive policies from President Joe Biden’s 2023 AI Executive Order. Trump’s order rescinded Biden’s framework, which emphasized oversight, risk mitigation, and equity, including requirements for companies to share safety test results with the government and address AI’s potential for discrimination.

Instead, Trump’s directive prioritizes deregulation, calling for AI systems free from “ideological bias or engineered social agendas” to boost innovation, economic competitiveness, and national security. It mandates a 180-day AI Action Plan, led by key advisors like AI and Crypto Czar David Sacks, to streamline policies and eliminate bureaucratic hurdles.

Trump has promoted a $500 billion joint venture between OpenAI, Oracle, and SoftBank, which he described as “the largest AI infrastructure project in history.” The initiative aims to construct a nationwide network of data centers across the United States.

“China is a competitor and others are competitors. We want it to be in this country,” Trump said at the White House announcement, joined by OpenAI’s Sam Altman, SoftBank’s Masayoshi Son, and Oracle’s Larry Ellison.

“We have to get this stuff built,” the president added. “They have to produce a lot of electricity and we’ll make it possible for them to get that production done very easily at their own plants.”