Chinese AI models are popular. But can they make money? (www.economist.com)

Chinese AI models are gaining substantial popularity, particularly following the remarkable entry of DeepSeek, a relatively obscure AI lab that launched an innovative model last year. China's dominance in the sector has surged, with the country now leading in open-weight models—frameworks that provide freely accessible numerical parameters from training without disclosing the underlying data or code. This shift is evident as downloads of Chinese AI models on platforms like Hugging Face have recently surpassed those of American counterparts, highlighting a significant geographical shift in AI software development. The rise of these models is crucial for the AI/ML community as it reflects a growing trend toward open-access resources, potentially democratizing AI technology and fueling further advancements. However, the challenge remains whether these models can generate sustainable revenue. While their technical prowess and popularity are on the upswing, financial backing is essential for continued growth and development. The increasing pace of technology adoption coupled with financial strategies could define the next phase for these models and determine their long-term viability in the competitive AI landscape.