Microsoft Executive Warns of US-China AI Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Source: Newsfilter
- Intensifying US-China Competition: Microsoft President Brad Smith highlighted that American companies face competition from Chinese government subsidies, particularly as Chinese firms leverage multi-billion-dollar national investment funds and energy vouchers, which could impact US market share in AI.
- Attractiveness of Chinese AI Models: Smith noted that China's lower-cost AI models could be more appealing in developing nations, a trend that may diminish the competitive edge of US firms globally, especially as their advantages in technology innovation and chip access could be undermined.
- Historical Lessons: Reflecting on China's success in the telecommunications market, Smith pointed out that state funding and support helped companies like Huawei and ZTE rise, leading to some American and European firms like Ericsson and Nokia being forced into a defensive position, emphasizing the profound impact of subsidies on market competition.
- Microsoft's Investment Plans: Microsoft aims to invest $50 billion by 2030 to promote AI development in the
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 460.520
Low
500.00
Averages
631.36
High
678.00
Current: 460.520
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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