The article frames Thailand's position in the global AI race between the US and China, analysing the AI value chain (energy, chips, data centers, models, applications) to identify where Thai SMEs can realistically compete. Key finding: while Thailand cannot compete in chip manufacturing or foundational models, there is significant opportunity in developing domain-specific AI applications (e.g., healthcare, tourism, SME tools) and achieving "sovereign AI" capabilities. The US is closely watching transit countries like Thailand and Singapore to prevent China from circumventing AI sanctions. This matters for Thai tech policy and SME strategy.