Former Google CEO Eric Schmidt has raised concerns about developing countries adopting Chinese AI models, mostly because of cost. According to Business Insider, Schmidt stated on a podcast that many US AI models are closed-source and expensive, pushing budget-conscious nations toward Chinese AI, which is often free and risks becoming the global standard.
Various venture capitalists and companies are shifting toward Chinese AI ecosystem because of their cost-efficiency when compared to US solutions. VentureBeat reported that at the TED AI conference, CEO of 01.AI and former Google Greater China President Kai-Fu Lee stated that Chinese open-source models have surpassed Meta's Llama model. The top 10 global open-source AI models originate from China, developed by firms including 01.AI, Baidu Inc., and Alibaba Group.
Alex Karp, CEO of Palantir Technologies, emphasized at an Axios event that the US must accept risks associated with AI development due to its implications for freedom and security. Karp warned that failure to lead in AI would result in global dominance by China, threatening human rights worldwide. He criticized some American discourse as overly cautious about AI risks, overlooking its strategic geopolitical significance.
Low-cost open-source AI models from Chinese companies like DeepSeek have raised concerns within US national security sectors, indicating that the AI competition goes beyond technology to global governance. China has explicitly pursued leadership in AI by 2025, with Premier Li Qiang proposing the creation of a World AI Cooperation Organization based in Shanghai at the World Artificial Intelligence Conference in July. President Xi Jinping reaffirmed this effort at the October Asia-Pacific Economic Cooperation summit to enhance international AI collaboration.
Additionally, the Chinese State Council introduced its Global AI Governance Action Plan to counter the White House's AI Action Plan. This initiative aims to accelerate digital infrastructure, promote data sharing, build consensus around standards and regulations, and collaborate with countries in the Global South to advance green computing and open-source AI. This approach echoes China's previous Belt and Road policy, emphasizing a broad vision for global AI governance.
Article edited by Emily Kuo
