The emerging US-China rivalry over Artificial Intelligence (AI) and cutting-edge technologies has become a fundamental aspect of contemporary global politics. This research explores how the mission for technological dominance between these two major powers is redesigning the geopolitical landscape, transforming long-standing coalitions, and introducing new frontiers of competition such as innovation, data manipulation, and semiconductor supply chains. The research explores critical developments such as the rise of strategic tech-driven coalitions like QUAD and AUKUS in setting global narratives around AI governance. This research applies the theoretical lens of Defensive Realism, which argues that states act to preserve their security in an anarchic international system by countering potential threats. This qualitative study examines how AI leadership and control over innovative technologies are becoming strategic instruments in the restructuring of geopolitical power dynamics.