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The U.S. and China are investing heavily in AI, with projected spending reaching $700 billion in 2023. However, their approaches differ significantly; the U.S. focuses on achieving artificial general intelligence (AGI), while China prioritizes using AI to enhance economic productivity across various industries.

China is embedding AI into sectors like manufacturing and healthcare, while the U.S. emphasizes data-driven applications. Both nations also compete in semiconductor production and military applications, although China has not designated a national champion for AGI development.