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Navigating AI Opportunities Amid Geopolitical Tensions

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The lead product for Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google’s AI Studio has voiced concerns over the U.S. government’s approach to artificial intelligence.

What Happened: Taking to X, formerly Twitter, over the weekend, Logan Kilpatrick said that despite the national security rhetoric, many people are fine with adopting Chinese AI models.

“Everyone: America America America, we must win AI, national security, etc etc,” he posted, adding that the moment decent models from China come, people start supporting the model on their platforms. 

“It’s so great! So cheap, so fast, such good rate limits,” he concluded the post sarcastically noting the appeal of Chinese models.

See Also: CES 2025 Preview: Nvidia And AMD Grab Spotlight, Other Trends And Stocks To Watch

Everyone: America America America, we must win AI, national security, etc etc

*Decent models come out from China*

Everyone: We now support XYZ model on our platform (from China), come use it right now, it’s so great! So cheap, so fast, such good rate limits!

— Logan Kilpatrick (@OfficialLoganK) January 4, 2025

Why It Matters: The concerns raised by the Google executive come amid China’s rapid advancements in AI technology.

A survey conducted in July 2024 revealed that 83% of Chinese companies are using generative AI, far surpassing the global average. China has also established a Global AI Governance Committee to influence AI’s global development.

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In July 2024, the Wall Street Journal reported that Talkie, an English-language app tied to a Singapore-based company, is a subsidiary of Shanghai-based MiniMax, one of China’s prominent tech unicorns. Talkie was among America’s more popular entertainment apps.

Rather than using MiniMax’s proprietary engine, it relied on ChatGPT-maker OpenAI’s foundation model. However, it generates tangible revenue for MiniMax.

Despite U.S. restrictions on advanced chip sales, Open-source AI models developed in China, like DeepSeek and Alibaba Group Holdings’s (NYSE:BABA) Qwen, have seen remarkable global adoption, including among developers in the U.S.

Last year, Alibaba’s Qwen emerged as the most downloaded open-source AI model, with its platform hosting more than 75,000 derivative models, reported The Wire China.

At the close of 2024, Alibaba Cloud made its third generative AI price cut of the year, reducing costs by an astonishing 85%. Alibaba Cloud’s new multimodal AI is 83.6% more affordable than OpenAI’s GPT-4o, priced at $2.50 per million input tokens while delivering comparable performance.

Moreover, Chinese large language models rank among the most widely used on Hugging Face, a leading platform for AI models.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next:

  • Microsoft’s Copilot Plus Set To Expand To Mini PCs At CES As Windows-Maker Looks To Take On Apple’s Mac Mini

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

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