China’s recent rise in open-source AI has caught global attention, especially after DeepSeek released a powerful and freely available language model earlier this year. While some assumed this signaled China outpacing the U.S. in AI, Meta’s AI chief Yann LeCun clarified that open-source models, regardless of origin, are now leading the field, surpassing even some private ones.
Top tech figures in China, like Eddie Wu of Alibaba and Pony Ma of Tencent, are embracing the open-source approach, where AI code can be used, shared, or improved by anyone. The Chinese government appears to support this strategy. In January, DeepSeek’s CEO Liang Wenfeng represented the AI industry in a meeting with Premier Li Qiang, underscoring Beijing’s interest in the field.
While open source is not unique to China, its adoption there is closer to the concept’s original intent. DeepSeek’s licensing allows wide public use, unlike companies like OpenAI which keep model details private. Even Meta, which offers its Llama models for free, places limits on commercial use. Still, Meta agrees that staying open is the way to lead.
China’s push for open-source AI also stems from necessity. U.S. restrictions on advanced chips have blocked Chinese companies from accessing top-tier hardware from firms like Nvidia. Turning to open-source models developed abroad—or building their own—lets Chinese companies continue progressing. Before DeepSeek, many Chinese AI models were simply adapted from Meta’s.
By pooling resources and sharing innovations, China is quickly closing the AI gap with the U.S. In recent weeks, major players like Tencent, Baidu, and Alibaba have all launched or updated open-source models. Ant Group, founded by Jack Ma, has also found ways to train AI using domestic chips with results close to those achieved with Nvidia’s hardware.
The European Union (EU) is also betting on open source to boost its position, with major funding earmarked for collaborative AI development. Meanwhile, China’s open-source generosity is improving its global image. As DeepSeek’s Liang put it, contributing to the community earns respect. Economists like Tyler Cowen have even noted China is gaining not just in tech, but in cultural influence.
Still, open source comes with trade-offs. It can hurt profits, especially for public companies like Alibaba. The real challenge, though, may come from within China. Strict government controls and vague rules around AI regulation could limit just how open these projects remain, especially if national security becomes a concern.
For companies like Thumzup Media Corp. (NASDAQ: TZUP) leveraging AI to offer value-added solutions to customers, the changing preference for open-source vs. proprietary AI backbone systems is something they need to watch closely as it could shape customer choices in the coming years.
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