- China is rapidly rising in the global AI race with a strategy focused on open-source AI models that can be freely downloaded and customized, such as DeepSeek, Qwen (Alibaba), Moonshot, Z.ai, and MiniMax.
- Since January 2025, with the launch of DeepSeek R1, Chinese open-source AI models have continuously emerged and are increasingly being embraced by the global community.
- In contrast, American companies, which have traditionally kept their AI models proprietary, are beginning to feel the pressure. In early August, OpenAI released gpt-oss, its first open-source model.
- The Trump administration also warned in its AI plan that open-source models could become the global standard and called for the development of leading models “based on American values.”
- Although there is no direct revenue yet, AI companies can capitalize on an ecosystem of related services – similar to how Google monetizes Android.
- China is strongly encouraging the development of open-source AI as a “backup” strategy in case it is cut off from American technology – including operating systems, microprocessors, and engineering software.
- According to analytics firm Artificial Analysis, Alibaba’s Qwen3 surpasses OpenAI’s gpt-oss in overall performance, but it is more resource-intensive due to its model size being nearly double.
- Asian businesses prefer Chinese models because they better understand local languages and cultural nuances.
- For example: OCBC Bank (Singapore) is simultaneously using about 10 open-source AI models, including both Qwen and DeepSeek.
- Engineer Shinichi Usami (Japan) chose Qwen to develop a chatbot because it handles language in a “more polite and nuanced way” compared to American models.
- The fierce competition among Chinese AI companies is shifting from closed models to open-source, aiming to capture users rather than immediate revenue.
- Amazon Web Services assesses that gpt-oss is more cost-effective when run on their infrastructure, but DeepSeek and Qwen are highly regarded for their regional language processing.
- China is also promoting international cooperation on open-source AI, seeing it as a new geopolitical tool to build a global “circle of friends” and bridge the digital divide.
📌 China is changing the global AI landscape with a wave of open-source models like Qwen and DeepSeek, causing the U.S. to worry about losing its strategic position. With 60% of global AI patents and superior regional language processing capabilities, China aims to make open-source AI the new standard. China is also promoting international cooperation on open-source AI, viewing it as a new geopolitical tool to build a global “circle of friends” and bridge the digital divide.
