China’s strategy for artificial intelligence (AI) is increasingly oriented towards open-source models, a move described by industry leaders as a critical approach to reshaping the nation’s economy. Hisham Alrayes, CEO of GFH Financial Group, emphasized this point during a panel discussion on China’s “AI+ Economy” at the World Economic Forum in Davos on Wednesday. He noted that the country’s focus on open models aims to distribute the benefits of AI more widely across its economy, rather than concentrating them within a few dominant tech companies.
Alrayes highlighted the distinction between China’s open AI philosophy and the more closed ecosystems prevalent in the United States. He stated, “You look at the open structure of the China AI philosophy — then you have the non-open structure. That signals that the benefit they want to see is to trickle down into the economy, into the companies.” This philosophy reflects a broader economic strategy that prioritizes widespread access to AI technology.
A prominent example of this approach is China’s notable AI platform, DeepSeek, which relies predominantly on open-source models. This stands in contrast to many American language models that are proprietary and benefit from tightly controlled commercial ecosystems. Yann LeCun, former chief AI scientist at Meta, pointed out that DeepSeek’s success can be attributed to its open-source framework, which fosters efficiency and innovation by building on shared research.
Former Google CEO Eric Schmidt echoed this sentiment, remarking that China’s open-source models could gain a competitive edge on the global stage due to their affordability, appealing to countries and governments that might find costly proprietary systems prohibitive. Alrayes reiterated that China’s commitment to open-source technology aims for both affordability and scalability, ensuring the economic benefits reach a broader swath of society. “It’s not the benefit of that company, of that product, the return of that individual. It’s not an individual — it’s an economy,” he added.
This open-source emphasis is encapsulated in China’s national “AI Plus” action plan, which Gong Ke, executive director of the Chinese Institute for New Generation AI Development Strategies, described as prioritizing the integration of AI across various sectors, including manufacturing, healthcare, finance, and education. Instead of focusing solely on breakthrough technologies like artificial general intelligence, the plan aims for practical applications. Gong noted explicit adoption targets, predicting that AI agents and intelligent terminals will achieve 70% penetration by 2027 and 90% by 2030.
Alrayes further explained that China’s strategy reflects a vision of AI as an essential infrastructure rather than merely a profit generator for a select few enterprises. “China is looking to create value throughout the economy, very clear, with very specific objectives across the economy,” he remarked, emphasizing the difference in philosophy compared to models that prioritize individual corporate gain.
As AI continues to advance, the implications of China’s open-source approach could resonate beyond its borders, potentially reshaping the global landscape for technology and innovation. By prioritizing a model that seeks to distribute economic benefits more equitably, China positions itself uniquely in the ongoing international competition over AI dominance.
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