China and America are racing to develop the best AI. But who is ahead in using it?

WHO is better at the technology of the future: America or China? Speculation is at fever pitch. The world’s most famous artificial-intelligence company, OpenAI, is American. Models produced by DeepSeek, a Chinese competitor, are almost as good – and cheaper.

The true winner of the AI race, however, may not be the country that invents the best models. It is more likely to be the country where governments, businesses and ordinary people use AI at scale every day.

For everything from economic growth to military power, technological diffusion ultimately matters more than technological innovation. On that front, the race is closer than many in America believe.