Throughout 2024 Open Source AI has been slowly catching up with investor-funded AI, but in the first weeks of 2025 that has dramatically accelerated. Now Open Source isn’t just catching up, it is arguably better and superior to investor-funded AI.
Restrictions on chip imports seem to be driving Chinese innovation, not slowing them down. Using lesser chips, they’ve optimized AI to run cheaper and more efficiently, but be just as powerful. Not only that, they’ve open-sourced that AI.
Where does that leave the hundreds of billions poured into investor-funded AI? Who knows. But they’ve no product to sell that people can’t get elsewhere way cheaper or for free.
This also means AI will become decentralized and democratized. Many thought it would just be in the hands of Big Tech, but the exact opposite scenario is playing out.
What are the economic implications? AI hype is keeping the US stock market afloat - how long can that last?
US taxpayer is going to be funding this shit and taking all the risk, if they fail, they still win.
But US national debt goes up and working pedon’s income is responsible for servicing it.
Yes, exactly. China wins regardless, because there is no benefit for the US in this project at all except to implicitly bail out people who have already lost so much money here. There is no way to win, because there is no goal line. If China releases something that is even 90% as good as OpenAI, everyone will use that instead of paying for OpenAI. The game is already over.