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US Needs Trillions To Stay Ahead of China in AI Race — Blackrock CEO Points to Pensions and Retirement Savings (www.ibtimes.co.uk)

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[–] GoofSchmoofer@lemmy.world 9 points 2 days ago

The thing is the West and China are not really using AI in the same way so saying we are in a race with them is incorrect and using old Cold War tactics to scare the West into spending more money on this technology.

Example of the differences:

The US and China are taking very different paths in the development and deployment of artificial intelligence. In the US, innovation has largely focused on large language models (LLMs) and the virtual world, resulting in chatbots, image generators, and digital assistants like ChatGPT and Copilot. These tools have captured the imagination of both consumers and investors, but questions are now emerging about their real economic value. A recent MIT study, The GenAI Divide: State of AI in Business 2025, found that while more than 80% of organizations are experimenting with generative AI, only about 5% of pilots are delivering measurable value. Most remain stuck in early phases, hindered by fragile workflows, poor integration, and a lack of systemic readiness. Meanwhile, informal ‘shadow AI’ usage, that is employees using tools outside official channels, has exploded, thereby creating a mismatch between official adoption and actual productivity gains.

By contrast, China’s approach to AI is more grounded in real-world applications. As Chinese economist Andy Xie recently explained on Tegenlicht, AI development in China is focused on practical domains such as mining, electric vehicles, and industrial efficiency. Unlike the high-cost, high-hype American model, China’s AI strategy emphasizes low-cost, scalable technology that delivers tangible utility. This makes it particularly attractive to the Global South, where cost and accessibility often outweigh cutting-edge innovation. A striking example is DeepSeek, a Chinese open-source chatbot that was developed with limited funding and no ties to elite academic institutions. Despite this, it is 10× more energy-efficient than OpenAI’s models and is already being integrated into consumer products like cars.

https://freedomlab.com/posts/the-ai-narrative-divide-between-the-us-and-china