A surge in investments in defense and dual-use technologies is reshaping the global AI race, driven by increased government spending and the utility of AI in conflicts like the Ukraine war. Venture capital spending on defense tech has reached record levels, leading to a more diverse set of competitors, including new 'neo-primes' and large tech companies signing contracts with the US Department of Defense. Europe is emerging as a rapidly growing market for AI-enabled capabilities, driven by strategic autonomy and geopolitical tensions. Countries like South Korea and Ukraine are using battlefield experience to develop their tech sectors, highlighting the potential for smaller nations to compete in the AI race.
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