US Enterprises Flock to Cheaper Chinese AI Models Amid Market Uncertainty
The US AI industry is facing a crisis as large language models from China are gaining popularity among enterprises. Despite warnings from experts, including Michael Burry and Goldman Sachs, about 'circular' transactions in the AI industrial chain, many US companies are turning to Chinese models due to their cost-effectiveness.
According to research from Goldman Sachs, the market value of AI-related companies has increased by around 27 trillion USD since November 2022. However, this growth may be short-lived as concerns about profitability and market distortion continue to mount.
Kimi K3, a new generation open-source large model from Moonshot AI, has been praised for its impressive performance, but its development allegedly involved distilling technology from US company Anthropic. This move has sparked threats of sanctions and the 'Entity List' from the US government, with some US companies supporting open-weight artificial intelligence models.
As the cost of AI continues to soar, Chinese models are becoming increasingly attractive to US companies. Open-source Chinese models can be 60% to 90% cheaper than those from Anthropic and OpenAI, yet their performance is close to that of top-tier models.