[WarmWash]

Soft power primarily (see my original comment),and less data for western labs to train on, less money for western labs to have.

The state can use their AI as a tool to bolster their standing, which is working well. Chinese AI labs don't have to worry about making money or affording more compute. The state will (and does) give them whatever they need.

[inigyou]

Oh no! A group of people doing useful and good things to increase their reputation! That's terrible!

But seriously, if it works so well, why don't we do it too?

[WarmWash]

Because the US is a democracy and there is blowback for pissing off the public. So allocating hundred of billions of taxpayer money to AI would be enormously unpopular. We have private markets that can spend their money however they chose.

China just has the state with one leader than thats it.

[inigyou]

But the US did allocate hundreds of billions of taxpayer dollars to AI...