This is the reason IMO. Fundamentally China right now is better at manufacturing (e.g. robotics). AI is the complement to this - AI increases the demand for tech manufactured goods. Whereas America is in the opposite position w.r.t which side is their advantage (i.e. the software). AI for China is an enabler into a potentially bigger market which is robots/manufacturing/etc.
Commoditizing the AI/intelligence part means that the main advantage isn't the bits - its the atoms. Physical dexterity, social skills and manufacturing skills will gain more of a comparative advantage vs intelligence work in the future as a result - AI makes the old economy new again in the long term. It also lowers the value of AI investments in that they no longer can command first mover/monopoly like pricing for what is a very large capex cost undermining US investment in what is their advantage. As long as it is strategic, it doesn't necessarily need to be economic on its own.
Commoditizing the AI/intelligence part means that the main advantage isn't the bits - its the atoms. Physical dexterity, social skills and manufacturing skills will gain more of a comparative advantage vs intelligence work in the future as a result - AI makes the old economy new again in the long term. It also lowers the value of AI investments in that they no longer can command first mover/monopoly like pricing for what is a very large capex cost undermining US investment in what is their advantage. As long as it is strategic, it doesn't necessarily need to be economic on its own.