US-China AI competition has escalated into a strategic rivalry with Anthropic's Mythos model at the center. China fears the advanced AI could be weaponized against its economy and questions export restrictions, while the US restricts access and applies security standards. Both sides are pursuing divergent strategies—the US locking down advanced models, China promoting open-weight AI like DeepSeek for global influence. This reflects AI's transformation from technology into a critical geopolitical battleground, with regulatory frameworks being developed around risk tiering and model capabilities.