US drafts letter pushing allies to pick US or China on AI

According to Reuters, the US is preparing a letter urging partner countries to align with Washington rather than Beijing in the AI race. The report did not specify which countries are targeted or what alignment would require.

Why it matters: This escalates the AI rivalry beyond export controls, like the recent H200-to-China licensing, into direct diplomatic pressure, forcing smaller nations and companies to pick supply chains and standards. Combined with China building its own chip financing ecosystem, it points toward a harder split into two competing AI blocs rather than one global market.