Chinese AI continues to Challenge US Lead

The continuing improvement in Chinese AI models will threaten the financial returns of US investments as it offers competitive performance at significant discounts raising the question of how much AI is enough? Is the premium advantage of using US models sufficient to justify the price?

China’s Moonshot Challenges Anthropic With a Bigger, Cheaper Model | PYMNTS.com

Chinese artificial intelligence startup Moonshot is reportedly preparing to launch Kimi K3, an open-weight model expected to rival Anthropic’s flagship

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US protectionism in multiple forms will be mobilised to make adoption of Chinese models difficult, What will be interesting is whether Albanese's new Office for AI will restrict Australian government and businesses to using the US models. No doubt the tired and increasingly flimsy issue of national security will be rolled out in an effort to ensure that Australian companies pay more than they should or need to.

This would place Australian companies at a disadvantage in comparison to nations that are not ensnared in the US security web in East Asia, including Indonesia, Malaysia and Vietnam.

An intelligent approach would recognise that engagement with China is inevitable as the global powerhouse of manufacturing. Australia's reliance on trade with China is evidenced by the EV's on our roads, the solar panels on our roofs, the screens in our lounge rooms and the bulk carriers that transit the South China sea with millions of tons of iron ore.