AI ADVANCES THROUGH ITERATION
For now, most US tech groups treat AI like an exclusive resource, restricting access to their most powerful models behind paywalls. OpenAI, Google DeepMind and Anthropic limit full access to their most advanced AI models, offering them through plans such as paid subscriptions and enterprise deals.
Meanwhile, the US government views open-source AI as a security risk, fearing that unregulated models could be fine-tuned into cyberweapons. US lawmakers are already pushing to ban DeepSeek AI software from government devices, citing national security concerns.
But Chinese tech groups are taking a very different approach. By open sourcing AI, they not only sidestep US sanctions but also decentralise development and tap into global talent to refine their models. Even restrictions on Nvidia’s high-end chips become less of an obstacle when the rest of the world can train and improve China’s models on alternative hardware.
AI advances through iteration. Every new release builds upon the last, refining weaknesses, expanding capabilities and improving efficiency. By open sourcing AI models, Chinese tech groups create an ecosystem where global developers continuously improve their models – without shouldering all the development costs.
The scale of this approach could fundamentally reshape AI’s economic structure. If open-source AI becomes just as powerful as proprietary US models, the ability to monetise AI as an exclusive product collapses. Why pay for closed models if a free, equally capable alternative exists?
For Beijing, this strategy could be a powerful weapon in the US-China tech war. US AI companies, built on monetisation through enterprise licensing and premium services could find themselves in a race to the bottom – where AI is abundant, but profits elusive.
