|
Feb 09
|
|
—
|
WATCH
|
Ali Ghodsi
CEO, Databricks
|
Chinese models and open-source alternatives are catching up to US closed models rapidly. Models like "Kimi" and "DeepSeek" are performing nearly as well as top-tier US models but at a fraction of the cost (or free). This creates a "race to the bottom" for pricing power among US model providers. Databricks' largest customers are offloading workloads to cheaper Chinese/open models for cost efficiency. Geopolitical regulation or chip bans could stifle the progress of Chinese models. |
CNBC
Under the hood of the AI economy: Databricks ...
|
|
Feb 09
|
|
—
|
WATCH
|
Ali Ghodsi
CEO, Databricks
|
Chinese models (like Kimi and DeepSeek) and open-source models are creating a price ceiling for US tech. These models are "good enough" (slightly behind US models) but significantly cheaper or free. This forces US hyperscalers to lower prices to compete, preventing them from maintaining massive margins on pure compute/token costs. Large Databricks customers are offloading high-volume tasks to Chinese models to save money. Geopolitical regulations could ban the use of Chinese models by Western enterprises. |
CNBC
Preparing for another tech wipeout: Databrick...
|