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China’s open-source AI is a national advantage

The models are akin to studying together to ace a test, instead of relying on individual knowledge.

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China’s AI companies such as Deepseek are following an  “Android strategy”, aiming for broader reach through open technologies.

China’s AI companies such as DeepSeek are following an “Android strategy”, aiming for broader reach through open technologies.

PHOTO: REUTERS

Kai-Fu Lee

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When Chinese artificial intelligence company DeepSeek released its R1 large language model (LLM) in January, America’s Nasdaq index fell 3 per cent in one day. The model rivalled market-leading US AI models in performance while using a fraction of their computing power, suggesting that America’s head start in generative AI might be shrinking. What’s more, it was made available open source. Anyone could download it for free and adapt it for their own commercial use. 

Today, there is more reason than ever to believe Chinese AI companies can rival their US peers.

DeepSeek’s latest two new models

match the reasoning performance of OpenAI’s GPT-5 and Google’s Gemini-3 Pro. 

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