Introduction
AI race continues at full speed between the U.S. and China with the ongoing advancements but with different strategies. A recent order from China was about to eliminate disorder on AI development. Efficiency perspective this sounds clear as developing and training models are the output of spending millions of dollars for a foundation model. On the other hand, innovation does not like hard rules and regulations. The U.S. has released an action plan and set the direction on acceleration of innovation and building American AI Infrastructure for leadership. The direction of countries will converge or differentiate, and we will learn this not later than 2028.
Order or Chaos in AI Innovation – Why Planning and Open Weight Models Matter
I will start with the core idea; innovation does not like hard rules and regulations. China has the materials and goods production knowledge at scale, and this has been achieved by mass production of specific items at specialized factories. A success story about this is happening with electric car parts being produced in scale and same parts used by different Chinese EV brands. Could the same if applied to AI developments produce similar efficiency? I don’t think it will work in the field of Data Science as the field is way different from physical production methodologies.
The path to innovation which comes with chaos will cause higher spending and less efficiency but if the target is to leap forward in Artificial Intelligence at earliest by taking global leadership, this method will have high chance of success.
China’s bold move for AI leadership came from the release of open weight models which pushed OpenAI to join the wave with its open weight models “gpt-oss-120b” and “gpt-oss-20b”. A crucial aspect of innovation is the usage of models which can thrive with global community interest, consumption, support and developer engagement. This has been a sub-race we’ve witnessed recently, and China played its hand wisely.
Innovation, Hardware and Infrastructure – Three Pillars of Success
Innovation requires freedom and global collaboration, but without a strong power grid and hardware technology and supply chain, a country cannot lead in AI. If current trends continue, the total power used by data centers worldwide could more than double compared to today’s levels. Nuclear power is in the talks for power hungry AI systems which can also help companies to fulfil their climate goals but realization of them take years up to a decade (https://www.technologyreview.com/2025/05/20/1116339/ai-nuclear-power-energy-reactors/). A challenge emerges at this point, the U.S. has a weak electrical grid, which could pose a major challenge to its AI leadership.
The U.S. is dominating AI chip technology and market, Nvidia at the forefront. China is making significant progress in producing competitive chips with the companies Cambricon Technologies, Biren Technology, and Alibaba. China does not yet mass-produce chips at the 5nm–3nm scale. This gives the U.S. time to strengthen its power grid, as the gap on chip technology could eventually be closed.
Different Vision – Different Race
We know from the Leadership of China; AI developments focus on practical use cases, set the target for improving efficiency and facilitating faster market adoption and investment returns. On the west side, the U.S. White House released “Winning the Race: America’s AI Action Plan” in July 2025 which lays out a broad federal strategy.
Neither the U.S. nor China has publicly set explicit goals or policies specifically targeting AGI (Artificial General Intelligence) or ASI (Artificial Superintelligence), nor have they formally defined a roadmap for achieving global leadership in these domains. At the leadership and policymaking level, this approach is reasonable, given that “AGI” still needs a precise definition. The lack of consensus on AGI creates an opportunity for divergence, with countries likely to pursue different objectives. And even divergence could be on practical use cases versus research investment on Artificial Superintelligence with intellectual level beyond human intelligence.
Conclusion
The innovation comes with a price, and it does not like hard rules but freedom within chaos. Supervision on technology companies for AI development efficiency may degrade the innovation and leave a country out of the race.
China has been more active in releasing open-weight LLMs publicly, while U.S. efforts dominate in closed-weight high-performance models and infrastructure. China’s move on the release of open weight models pushed OpenAI to join the wave. Open Weight Models’ race should not be underestimated as it is a sub-race on developer engagement with a strong influence on AI leadership.
Even if the
countries are likely to pursue different objectives (Practical applications
versus reaching AGI), the destination of AI by different countries will meet in
battlegrounds with full autonomy, restricted within zones. If AGI and
followingly ASI could not be achieved in next 5 years, practical use cases would
win in the short term and countries invested in this strategy would better be positioned
and control the upcoming market for AGI and ASI. We will get hints on this not
later than 2028 by understanding if AGI could be a reality and if LLMs will not
stay as powerful pattern recognizers.
Founder, Vubion.ai
https://www.linkedin.com/in/leventsertac/