AI cost race between China and U.S. heats up with latest models

Summary

CNBC's Kate Rooney reports on the intensifying AI competition between China and the US, highlighting new Chinese models from Alibaba and Moonshot that challenge US dominance, with data suggesting rising Chinese model usage. OpenAI's chairman downplayed the cost advantage, while the segment underscores the geopolitical implications.

• Alibaba launched a preview of its Qwen model, claiming it is runner-up to Anthropic's best version.
• Moonshot's Kimmy model, an open-weight model, nearly matches top US models and saw high demand, pausing subscriptions.
• CEOs view the new Chinese models as a capability shock, eroding the assumption of a safe US lead in AI.
• Open Router data shows token usage of Chinese models surpassed US models last week, though possibly experimental.
• OpenAI Chairman Bret Taylor told Squawk Box that the cost narrative around open-weight models is overblown; they may not be cheaper to run.
• The developments spill over to geopolitical tensions in the tech race.