Chinese AI models are gaining ground with US companies because they cost far less than systems from OpenAI and Anthropic, CNBC reports. Models from companies like DeepSeek and Z.ai are seen as competitive, even as per-token pricing from US providers keeps climbing.
On the platform OpenRouter, Chinese models have accounted for over 30 percent of traffic every week since February 8, hitting 46 percent at times. Last year, the average was just 11 percent. According to OpenRouter employee Justin Summerville, Chinese open-source models run 60 to 90 percent cheaper. The startup Lindy shifted all of its traffic from Anthropic's Claude to DeepSeek. CEO Flo Crivello said the switch saves millions.
Kyle Chan at the Brookings Institution puts the gap between Chinese and US models at six to nine months. That lines up with an estimate from the Center for AI Standards and Innovation (CAISI). The agency published a report in May finding that Chinese AI models trail leading US models by about eight months. The assessment covered cybersecurity, software development, math, science, and abstract reasoning.
AI News Without the Hype – Curated by Humans
Subscribe to THE DECODER for ad-free reading, a weekly AI newsletter, our exclusive "AI Radar" frontier report six times a year, full archive access, and access to our comment section.
Subscribe now