Chinese AI models threaten US industry by being up to 90% cheaper — and they're driving Google, OpenAI, and…
- Some Chinese models are said to be 90% cheaper than their US counterparts
- Open-weight models are also better suited to local deployment
- Price- and quality-driven markets exist within the AI sector
A new report from Juniper Research has revealed how rapid improvements and dramatically lower operating costs for Chinese AI models could be impacting the uptake of counterpart US models.
The paper details how Chinese AI models can now cost as much as 90% less to run than leading US alternatives, which is already affecting where developers choose to run their AI workloads.
Looking ahead, the battle is becoming less about who can build the highest-performance, lowest-cost models and more about who can make inference cheaper.
Chinese AI models are seriously undercutting US models
Juniper's research focuses on API platform and marketplace OpenRouter, which last year saw around 70% of work being conducted with US AI models from the likes...
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