DeepSeek and Alibaba’s QN 2.5 have surpassed OpenAI’s ChatGPT-4o and Meta’s Lama, shifting the AI landscape. This is not just a China vs. US competition but a broader debate on technology, ecosystems, and geopolitics.
- Open vs. Closed AI Systems: OpenAI, despite its name, follows a closed, monetised model. DeepSeek, on the other hand, champions open-source AI, making foundational models accessible to all.
- China’s AI Ecosystem: Hangzhou, home to Alibaba, fosters private-sector AI growth, spawning numerous startups. In contrast, Beijing’s AI scene is state-funded and university-driven.
- Hardware Constraints Driving Innovation: US-imposed restrictions on advanced chips have forced Chinese firms to improve efficiency and productivity, pushing AI innovation in new directions.
- Commoditisation of AI: Open-source AI now enables users to personalise and modify foundational models, challenging OpenAI’s black-box approach.
- Global AI Landscape: AI breakthroughs aren’t confined to China or the US. New developments in generative and agentic AI are shaping the future beyond these two powerhouses.
- China’s Talent Pool: With a population of 1.5 billion people and millions of engineers graduating each year, China has the potential to build a globally competitive AI industry.
Conclusion:
China’s AI sector is advancing rapidly, driven by necessity and competition. While DeepSeek and Alibaba lead in foundational AI, China must evolve from a domestic innovator to a global AI hub to attract top-tier talent and remain at the forefront of AI evolution.
