The USMCA presents a strategic opportunity for North America to solidify dominance in the rapidly expanding global AI market, which is projected to reach $3.5 trillion by 2033. With China actively challenging U.S. leadership through aggressive national AI development policies, the trilateral agreement between the United States, Mexico, and Canada offers a framework for regional collaboration that could secure North America’s competitive advantage. This potential for cooperation becomes increasingly vital as AI transforms from an emerging technology into a foundational economic driver across industries.
The big picture: The global artificial intelligence market is experiencing explosive growth, with projections showing a potential value of $3,527.8 billion by 2033 and annual growth exceeding 30% between 2024 and 2033.
- North America already dominates this expanding market, generating approximately $100 billion annually in AI-related revenues.
- The growing competition from China and other global players makes regional cooperation through the USMCA increasingly strategic for maintaining North American leadership.
The competitive landscape: China has emerged as the primary challenger to North American AI dominance through systematic national development planning.
- China’s “New Generation Artificial Intelligence Development Plan,” launched in 2017, aims to position the country as the world’s primary AI innovation center by 2030.
- Since 2021, China has surpassed the United States in the number of AI and machine learning patents filed, indicating accelerating innovation.
Regional capabilities: The three USMCA partners bring complementary but uneven AI development profiles to potential collaboration efforts.
- The United States maintains its position as the global AI technology leader, attracting $67.2 billion in private AI investment in 2023 alone.
- Canada established early leadership in AI governance by publishing the first National AI Strategy in 2017, creating a framework for responsible development.
- Mexico lags behind its northern neighbors in AI development, representing both a challenge and an opportunity for regional integration.
Strategic opportunities: The USMCA provides several pathways for enhancing North American AI competitiveness through coordinated action.
- Strengthening cross-border data flows would facilitate AI development that leverages the combined data resources of all three nations.
- Developing common AI governance frameworks could establish regional standards that balance innovation with responsible development.
- Harmonizing intellectual property standards would protect AI innovations while encouraging knowledge sharing across borders.
- Regional talent development programs could address workforce needs while distributing AI expertise more evenly across North America.
- Enhanced semiconductor supply chain resilience would secure the hardware foundation necessary for advanced AI development.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...