Source: Fortune
Summary
In 2026, venture capitalist Hans Tung compared the current AI revolution to historical technological shifts, using the example of 19th-century shipbuilding and railroads. He argued that infrastructure, not just innovation, determines global dominance. Tung highlighted China’s lead in shipbuilding and rail infrastructure, suggesting it mirrors the North’s advantage in the Civil War. He also compared data centers to 21st-century railroads, emphasizing their role in AI adoption. Tung said the U.S. faces a major buildout challenge to keep up with China’s infrastructure growth.
Our Reading
The numbers tell one story.
Tung uses 19th-century history to explain AI’s infrastructure needs.
China builds more ships and rail than the U.S. in a critical moment.
Data centers are the new railroads, but the U.S. lags in buildout.
Infrastructure, not just ideas, decides who wins the future.
Author: Evan Null
Steel Ships and Data Centers
Hans Tung, a managing partner at Notable Capital, has long been fascinated by history. His insights into the AI revolution come from a deep understanding of past technological shifts. He sees parallels between the rise of the British Navy and the current race for AI dominance. Tung’s analogy is not just academic; it’s a call to action for investors and policymakers.
The British Model
Tung’s first analogy is the British Navy’s dominance in the 19th century. By adopting steel ships and steam engines, the British built a naval power that shaped the world. He argues that today’s AI revolution requires similar infrastructure investments. Without the right foundation, even the best ideas won’t succeed.
Data Centers as Railroads
Tung compares data centers to the railroads of the 19th century. Just as railroads enabled the North to win the Civil War, data centers will determine who wins the AI race. He says that without enough compute power, even the best AI models won’t matter. This is a key point for investors and tech leaders to consider.
China’s Infrastructure Lead
China has been outbuilding the U.S. for decades. It has more high-speed rail than the rest of the world combined and dominates shipbuilding. Tung points out that China’s ability to scale infrastructure at a massive level gives it a strategic advantage. This is a trend that the U.S. must address to remain competitive.
The U.S. Challenge
The U.S. faces a massive challenge in building out AI infrastructure. A Columbia professor estimates that the AI buildout could consume 3.6% of U.S. GDP annually until 2032. This is a huge undertaking, with concerns about grid capacity and community resistance. Tung’s message is clear: the U.S. must act quickly to keep up with China’s momentum.
