Former Google CEO Eric Schmidt stated in a September 2026 interview with The Economist that a mutual pause in the AI race between the US and China is unfeasible. He cited structural incentives for continuous development in the US and the impossibility of verifying whether competitors have actually halted their research as primary obstacles.
Instead of a timeout, Schmidt advocates for progress integrated with safety mechanisms. He proposed using older AI models to supervise newer ones, suggesting a four-month age gap for oversight systems. Additionally, he called for bilateral treaties between the US and China based on a no-surprises rule to prevent operational mishaps during deployment.
Schmidt has opposed AI development slowdowns since at least 2023, arguing that such measures could grant China a competitive advantage. The topic of AI strategy may be addressed at an upcoming summit between Chinese President Xi Jinping and Donald Trump, shifting the policy focus from halting development to establishing rules for the ongoing race.
For investors, the focus on sustained innovation may drive capital toward AI firms. Companies that implement credible safety measures could potentially secure partnerships and market confidence. However, critics argue that relying on unproven oversight mechanisms, such as model-on-model supervision, carries significant risks.
