China has a different vision for AI. It might be smarter.

The U.S. is spending billions of dollars and burning gigawatts of energy in a rush to beat China to the next evolutionary leap in artificial intelligence—one so great, some boosters say, that it will rival the atomic bomb in its power to change the global order.

- Josh Chin & Raffaele Huang

China is running a different race.

Since the release of OpenAI's ChatGPT nearly three years ago, Silicon Valley has spent mountains of money in pursuit of AI's holy grail: artificial general intelligence that matches or beats human thinking.

Enthusiasts say it will give the U.S. insurmountable military advantages, help cure cancer and solve climate change, and eliminate the need for people to perform routine work such as accounting and customer service.

In China, by contrast, leader Xi Jinping has recently had little to say about AGI. Instead, he is pushing the country's tech industry to be "strongly oriented toward applications"—building practical, low-cost tools that boost China's efficiency and can be marketed easily.

The diverging visions represent a head-to-head bet with significant stakes. If China's gamble turns out to be wrong, it could find itself lagging far behind the U.S. in the most consequential technology of the 21st century.

But if AGI remains a distant dream, as more people in Silicon Valley now believe, China will be in position to steal a march on its global rival in wringing the most out of AI in its current form, and spread its applications worldwide.

Already in China, domestic AI models similar to the one that powers ChatGPT are being used, with state approval, to grade high-school entrance exams, improve weather forecasts, dispatch police and advise farmers on crop rotation, say state media and government reports.

Tsinghua University, China's equivalent of the Massachusetts Institute of Technology, is rolling out an AI-powered hospital, where human doctors will be assisted by virtual colleagues armed with the latest data on diseases. Intelligent robots are being deployed to run automotive "dark factories" and inspect textiles for flaws while still on the loom.