On Thu, Nov 20, 2025 at 02:56 PM, Tom Walker wrote:

> 
> They are making objectively high risk investments for the high returns but
> hiding the risk in "complexity."

Price and performance pressure from open source Chinese AI further heightens 
the risk:

That some North American companies and consumers are choosing Chinese-made AI 
"just tells you about the technical sophistication that we're seeing from China 
and that it really rivals the best from what we're seeing in the U.S. right 
now," said Sheldon Fernandez, the Toronto-based co-founder of DarwinAI, which 
developed AI for quality control in manufacturing and has since been acquired 
by Apple.

Open-source AI models like the ones being developed in China "are cheaper and 
you can control them in your own environment," he said. They can be modified to 
suit a user's needs, though that might require some technical expertise.

Lamenting that ChatGPT wasn't "quite robust enough," Airbnb CEO Brian Chesky 
said last month that the vacation rental company relies heavily on 
Chinese-owned Alibaba’s Qwen model to power its AI agents.

And venture capital firm Social Capital recently migrated its workload to Kimi 
K2 because it performed more efficiently and was "frankly just a ton cheaper 
than OpenAI and Anthropic," said Chamath Palihapitiya, the company's 
Canadian-American CEO, while co-hosting the All In podcast.

Deng, the Bloomberg analyst, says he doesn’t expect Chinese models to take over 
the market anytime soon.”But they will always be there to put competitive 
pressure on U.S. models,” maintaining a price ceiling on the cost of AI, he 
said.

https://www.cbc.ca/news/business/china-us-race-artificial-intelligence-9.6985098


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