China’s biggest AI players are luring US capital back to the country while extending their reach in overseas markets.
As the sector’s stock surges, US-managed funds have increased their stakes in firms like Alibaba, despite Washington’s scrutiny, while China-based funds are raising US dollars to invest in Chinese early-stage startups, The Wall Street Journal reported. Driving China’s AI development is an embrace of open-source models, which are free to adapt and download. “The effect is akin to studying together to ace a test, rather than relying on individual intelligence,” a Chinese AI company’s CEO said.
By contrast, US tech firms largely favor “closed” systems that are tightly controlled; Meta is reportedly planning to pivot to a closed model.