DeepSeek tested that strategy. The Hangzhou-based start-up made waves by releasing models that matched the performance of products from Western rivals like OpenAI and Anthropic. By making its technology openly accessible, DeepSeek allowed developers around the globe to experience the power of its models firsthand.
Since then, Chinese AI development has exploded, with companies large and small rushing to unveil increasingly advanced models. Most releases are open-source.
“Globally, AI labs are feeling the heat as open source models are increasingly recognized for their role in democratizing AI development,” Grace Shao, an China-based AI analyst and founder of AI Proem, says.
U.S. tech stocks have rebounded from the slump triggered by DeepSeek, but the shift to open-source may be more permanent. In March, OpenAI CEO Sam Altman conceded that the developer may have been on the “wrong side of history” by maintaining a closed approach.
Chinese AI firms are now aggressively championing open-source.
Baidu, once the leader in China’s AI development with its ERNIE model, went open-source a few months ago to catch up with Alibaba and DeepSeek. Kuaishou and Tencent have both released open-source video-generation models. Zhipu AI, Moonshot AI and MiniMax–some of China’s so-called “AI tigers”—have also released open-source models in recent weeks.
And there’s a business argument too: Alibaba executives, for example, argue that their open-source Qwen models encourage companies and startups to use Alibaba’s cloud computing services.
There may also be a psychological element at play. Going open-source lets users around the world see the power of Chinese AI models for themselves, appealing to an up-and-coming tech sector that’s long been denigrated by outsiders as a copycat.
China has supported other open-source technologies. Officials back the use of the RISC-V chip design architecture, an open-source alternative to proprietary architectures like ARM and Intel’s x86. RISC-V allows Chinese chip engineers to share best practices and ideas, spurring the growth of the broader sector.
Beijing seeks to develop a self-sufficient semiconductor sector, in part due to concerns of the U.S.’s control of critical parts of the chip supply chain. The Biden administration’s decision to impose chip controls in 2022 intensified China’s push for domestic innovation.
China’s embrace of open-source aligns with the country’s initial position as a runner-up in AI.
But for followers, who “can’t compete at the frontier,” releasing an open-source model is a way to show “how advanced you are,” she explained.
Open-source models also “buy a lot of goodwill,” Toner, who once served on OpenAI’s board, added. “What we’ve seen over the last couple years is how much soft power is available to people who are willing to and organizations that are willing to make their technology available freely,” she explained.
And with OpenAI’s decision, U.S. AI is now perhaps put in a rare position: Following, not leading.