>> Artificial intelligence, augmented reality, robotics, cutting edge technologies flowing from Silicon Valley drawing investment money from China And that stirring up anxiety in Washington. An internal Pentagon report, obtained by Reuters, warning China's investment in US artificial intelligence projects could give Beijing an edge in areas of national security.
>> And we're seeing real alarm at the Pentagon.>> Correspondent Phil Stewart is on the story.>> So China is investing a lot. And these emerging technologies, like artificial intelligence. They're involved in the venture capital investment in US companies that are starting up right now in Silicon Valley and other places, and they're investing in a way that is not currently regulated.
>> The Pentagon report found Chinese investors playing a role in 51 artificial intelligence ventures from 2010 to 2016, most of those in the last two years. Chinese search engine Baidu raising red flags this year when it agreed to acquire US computer vision firm X Perception.>> These businesses have made no secret of their intent to become leader in emerging technology.
The way the US system is created it's meant to encourage foreign investment. And a lot of Chinese firms are, in one way or another, connected to the Chinese State.>> The alarms reaching Capitol Hill. Republican Senator Cornyn of Texas proposing a bill to plug the holes in US oversight.
Would give the government's Committee on Foreign Investment more power to scrutinize foreign firms seeking to invest in US startups.>> Right now, the government export controls and its controls of foreign investment don't really apply to a lot of these emerging companies where there's just a little bit amount of foreign investment but that allows for access to some of these technologies.
So it's a better way to regulate strategic industries and keep US know how about artificial intelligence in the United States.>> The concerns about China coming is the US military rams up its own use of artificial intelligence in areas such as it's drone warfare program. Air force Lieutenant General, John Shanahan, telling Reuters he's overseeing a project giving armed drones the ability to identify features and details in live video feeds.
The kind of technology the Pentagon wants to keep safely in US hands.