Andrew Hastie compares AI to Cold War nuclear arms race and warns Australia may fall behind

Shadow minister Andrew Hastie has warned Australia risks becoming “a supplicant state” tethered to the United States unless it dramatically scales up investment in artificial intelligence, drawing a direct parallel with the nation’s decision last century to forgo a nuclear capability [1]. In a speech to Liberal members in Sydney on Monday, Hastie argued that failing to become an AI power would constrain Australia’s sovereignty just as reliance on the US nuclear umbrella had done [1]. “Last century, Australia missed the opportunity to become a nuclear power,” he said. “This century, Australia risks missing the opportunity to become an AI power. And the risk is that our sovereignty and strategic independence will be further constrained by the AI superpowers reshaping the global order” [1]. The intervention comes as the major AI firms driving the global race face their own pressures. Anthropic, the developer of the Claude series of large language models, was founded in 2021 with a focus on AI safety and has since grown to an estimated valuation of $965 billion [9]. Since January 2026, the company has been locked in a dispute with the US Department of Defense after refusing to remove contractual prohibitions on the use of its products for mass domestic surveillance and fully autonomous weapons [10]. The Pentagon subsequently designated Anthropic a “supply chain risk” and barred US private military contractors from doing business with the firm, though a federal judge issued a temporary injunction against the designation in March 2026 [11]. Hastie told the audience that Silicon Valley figures held strong influence within Donald Trump’s administration and were resisting new regulation [1]. He said Australia was caught between its closest security partner, the US, and its biggest trading partner, China, as both superpowers pursue AI dominance, including through semiconductor production in Taiwan [1]. “I don’t think it’s an exaggeration to say that a hot war between the US and China over AI dominance and advanced chips in Taiwan would be infinitely worse than a hot war in the Middle East,” he said [1]. The shadow minister also pointed to domestic economic disruption, warning that blue- and white-collar jobs would be replaced by automation. “If AI potentially starves people of work, we can expect great social upheaval,” he said. “If we strip from people the meaning that comes from creative and productive work, we can expect a revolt” [1]. Hastie called for an overhaul of the education system, arguing a 25-year backslide in standards had left students poorly prepared [1]. The speech was delivered as the Coalition’s primary vote hit a record low of 20 percent in a Resolve poll published Monday, trailing Labor on 28 percent and One Nation on 29 percent [1]. Hastie, considered a future leadership prospect, opted not to challenge Sussan Ley before she was ousted by Angus Taylor in January [1]. The federal government is currently weighing its approach to AI regulation, with former industry minister Ed Husic having pushed for a major AI act before being dropped from cabinet in 2025, while his successor Tim Ayres favours a lighter touch [1].