Artificial intelligence (AI) stands to fundamentally transform many aspects of society. The United States and China are the largest producers of AI technologies and are increasingly concerned about their rivalry with one another in the AI arena. It is commonly believed that the United States relies more heavily on a free market approach while China follows a state capitalism model in developing AI technologies. That conventional wisdom is too simple. Universities, firms, and the state play multiple, and different, roles in driving AI—and other—technologies in the United States and China.