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US, Vietnam strengthens bilateral ties in AI and aviation

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The United States has strengthened its bilateral relations with Vietnam after unveiling several business deals in key sectors, including artificial intelligence (AI) and aviation.

According to a Reuters report, both nations are keen on increasing the trade volume between them as they navigate the hurdles of unfavorable macroeconomic conditions. U.S. President Joe Biden met with key Vietnamese government figures and executives to explore new business frontiers.

The high-level summit saw executives from leading Vietnamese firms, including electric automobile manufacturer VinFast, Vietnam Airlines, and digital wallet service provider MoMo. U.S.-based firms like Google (NASDAQ: GOOGL), Amkor, Boeing, and Marvell all invited senior executives to the talks.

Both allies reiterated their intent to “deepen cooperation” in AI, cloud computing, and semiconductors amid a brewing cold war with China.

“We’re deepening our cooperation on critical and emerging technologies, particularly around building a more resilient semiconductor chain,” said President Joe Biden.

Biden confirmed plans by Microsoft (NASDAQ: MSFT) to build a generative AI product tailored explicitly for Vietnam designed to improve efficiency in the workplace. Generative AI models trained in Vietnamese are almost non-existent, with pundits pushing for Microsoft’s incoming solution to fill the void.

The report noted the existence of plans by Amkor to establish a $1.5 billion semiconductor manufacturing plant. According to preliminary reports, the plant will be focused on assembling AI chips to train large language models (LLMs) and is expected to begin operations in October.

Marvell and Synopsys are keen to get a slice of the market share following their extensive plans to set up chip design hubs across Vietnam.

The U.S. has every incentive to pursue AI investments in Vietnam as it continues its search for new markets to obtain materials for its semiconductors. In August, the Chinese government imposed restrictions on the export of gallium and germanium, rare elements used to create AI chips, after the U.S. banned NVIDIA (NASDAQ: NVDA) from selling AI hardware to China.

A dash for AI regulation

Amid the frenetic scramble by nations for AI chips, there is an underlying race to establish a global regulatory framework to police the technology from bad actors. The U.S. is proceeding with a meeting with leading AI developers to chart a regulatory course while China has gone on to roll out rules for AI firms to adhere to.

Since China’s move barely a month ago, over 70 generative AI tools have been launched in the country with the U.S. opting for a slow-and-steady approach.

Despite the fears that AI would adversely affect jobs, CertiK stated in a report that Web3 smart contract developers could be least affected by generative AI tools, given the lack of maturity and potential for security vulnerabilities.

Source

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