High-rank Western companies shifting to Chinese AI
(MENAFN)
An increasing number of major Western companies are adopting Chinese artificial intelligence models, potentially threatening U.S. leadership and profits in the global AI sector, The Wall Street Journal reported on Wednesday.
An increasing number of major Western companies are adopting Chinese artificial intelligence models, potentially threatening U.S. leadership and profits in the global AI sector, The Wall Street Journal reported on Wednesday.
High-profile firms like HSBC, Standard Chartered, and Saudi Aramco have started using or testing Chinese-developed AI, including models from DeepSeek and Alibaba. Even U.S. cloud giants such as Amazon Web Services, Microsoft, and Google are reportedly offering DeepSeek’s technology to clients, despite national security concerns raised by the White House.
Chinese AI tools are gaining traction due to their strong performance and significantly lower costs compared to American counterparts. According to Sensor Tower data, DeepSeek has seen 125 million global downloads—still behind ChatGPT’s 910 million, but rising fast.
Open-source availability has helped Chinese models spread quickly, allowing users to customize and run them offline. In South Africa, the University of the Witwatersrand chose DeepSeek for a pilot research initiative due to its adaptability. Likewise, Japan’s Ministry of Economy opted for Alibaba’s Qwen model instead of a U.S. alternative. On platforms like Latenode, around 20% of users reportedly prefer DeepSeek for AI development.
Experts warn that this shift may reduce U.S. influence over international AI standards. Microsoft President Brad Smith testified to the U.S. Senate that global adoption will be a key factor in determining whether the U.S. or China wins the AI race.
Despite their flexibility, critics argue that many consumer-facing Chinese AI apps may reflect Beijing’s policy preferences. U.S. lawmakers are now weighing legislation to prevent federal agencies from using Chinese-developed AI systems.
Meanwhile, U.S. tech leaders are intensifying their push to stay ahead. OpenAI CEO Sam Altman cautioned against Chinese rivals like Zhipu AI expanding in developing markets, asserting that “democratic AI” must prevail over “authoritarian AI.” OpenAI recently secured a $200 million contract with the Pentagon, while Meta launched a new division focused on building superintelligent AI. President Donald Trump has also endorsed a massive $500 billion initiative to ensure U.S. supremacy in the field.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
