More Silicon Valley Firms are Depending on Free AI Models from China

A quiet shift is happening in Silicon Valley. Many American tech startups are now building their products using free artificial intelligence models made in China. These Chinese systems, once seen as far behind American technology, have improved so quickly that they are becoming the foundation for apps, tools, and new businesses in the United States. 

This trend began as companies searched for cheaper and more flexible AI options. American models from companies like OpenAI and Anthropic are powerful, but they are also expensive and tightly controlled. Developers can only access them through paid platforms, and the costs can be extremely high. A single app can sometimes cost thousands of dollars per user each month when relying on these closed models. 

Chinese companies like DeepSeek and Alibaba offer something very different. Their models, such as DeepSeek R1 and Alibaba’s Qwen, are “open-weight.” This means anyone can download them, change them, and run them on their own computers without paying fees. Over the past year, these models have improved so much that they now match or come very close to the performance of top American systems in many everyday uses. 

For startups, the benefits are clear. Running a Chinese open model on their own hardware is usually faster and much cheaper. Some founders even say that, for certain tasks, these models perform just as well as famous tools like GPT-5. This shift saves money and also gives companies more control over how they use AI. 

Another advantage is privacy. Because open models can run directly on a user’s device, companies do not need to send sensitive information to cloud servers. This appeals to users who are uncomfortable with sharing personal data online. 

Chinese models are growing even faster because developers around the world are producing large communities, tutorials, and training guides to support them. In many tech forums, Chinese models dominate the list of recommended tools simply because they are easy to use and easy to customize. 

However, there are concerns. Some investors and companies fear political or security risks in using Chinese technology. Reports from American officials claim that some Chinese models have weaker safety controls or show pro-China biases. These warnings make larger companies more cautious, even if the models are attractive and affordable. 

At the same time, the United States is trying to catch up in open-source AI. New efforts from the White House, OpenAI, Meta, and the Allen Institute aim to create stronger American open models so the country does not fall behind. 

Still, for now, the momentum is clear. As Chinese AI models continue to improve, more Silicon Valley startups are choosing them as the smarter, cheaper, and more flexible option. 

As American entities like D-Wave Quantum Inc. (NYSE: QBTS) continue their efforts to develop cutting-edge technologies, there is an opportunity to tap this huge market of startups that are seeking affordable solutions upon which to base their innovative products. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

About TechMediaWire

TechMediaWire (“TMW”) is a specialized communications platform with a focus on pioneering public and private companies driving the future of technology. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, TMW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, TMW brings its clients unparalleled recognition and brand awareness. TMW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from TechMediaWire, text “TECH” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.TechMediaWire.com

Please see full terms of use and disclaimers on the TechMediaWire website applicable to all content provided by TMW, wherever published or re-published: https://www.TechMediaWire.com/Disclaimer

TechMediaWire
Los Angeles, CA
www.TechMediaWire.com
310.299.1717 Office
Editor@TechMediaWire.com

TechMediaWire is powered by IBN