The US wants the world to pick a side on AI. But for many countries, China’s pitch may be more compelling

Key Points:

• The US-China competition in artificial intelligence is intensifying, with the US currently leading in advanced AI labs and chips, while China is rapidly closing the gap by promoting more accessible, open AI models aimed at lower costs.
• China launched the World Artificial Intelligence Cooperation Organization as a rival to the US-led Pax Silica alliance, attracting 29 countries with its vision of open-source AI models that are free to download and customize, appealing especially to developers in the Global South.
• Chinese AI models have surged in global usage, rising from under 15% to over 54% in a year, with American companies also adopting these open systems for their cost-effectiveness and flexibility, highlighting a trend toward diversified technology suppliers.
• Despite calls for collaboration, the recent Trump-Xi summit yielded little progress on AI cooperation, reflecting deep mutual mistrust and contrasting approaches to AI governance, with China advocating openness but also likely to impose selective restrictions for national security.
• Washington accuses China of industrial-scale theft of American AI technology through model "distillation," while some US tech firms warn against broad restrictions on Chinese AI models, illustrating internal US divisions amid growing geopolitical tensions over AI development.