AI race shifts from US-China to open versus closed models

fortune.com

The AI race has shifted from US-versus-China rivalry to open-source versus closed models, as Chinese open-source systems like DeepSeek V4 now rival premium Western AI at far lower costs. DeepSeek V4 Flash trails GPT-5.6 Luna by only one Intelligence Index point yet costs 60% less per task, even after OpenAI slashed prices 80%. US export controls, meant to throttle Chinese AI, instead forced architectural innovation and efficiency. US tech executives now back open source, and Anthropic has shifted to safety concerns. With a September Xi visit to Washington, US-China cooperation on AI safety guidelines could temper the trillion-dollar arms race.


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