 The Virtual Mind reply concedes, as does the System Reply, that the operator of the Chinese Room does not understand Chinese merely by running the paper machine. However the Virtual Mind reply holds that what is important is whether understanding is created, not whether the Room operator is the agent that understands. Unlike the Systems Reply, the Virtual Mind reply (VMR) holds that a running system may create new, virtual, entities that are distinct from both the system as a whole, as well as from the sub-systems such as the CPU or operator. In particular, a running system might create a distinct agent that understands Chinese. This virtual agent would be distinct from both the room operator and the entire system. The psychological traits, including linguistic abilities, of any mind created by artificial intelligence will depend entirely upon the program and the Chinese database, and will not be identical with the psychological traits and abilities of a CPU or the operator of a paper machine, such as Searle in the Chinese Room scenario. According to the VMR the mistake in the Chinese Room Argument is to make the claim of strong AI to be “the computer understands Chinese” or “the System understands Chinese”. The claim at issue for AI should simply be whether “the running computer creates understanding of Chinese”.