Americans increasingly adopt Chinese AI models as lower costs challenge ChatGPT, Claude
NEW YORK, July 26: Chinese artificial intelligence (AI) models are gaining popularity among users in the United States as developers and businesses increasingly turn to lower-cost alternatives to leading American AI platforms such as ChatGPT and Claude, despite the Trump administration’s tougher stance on Chinese technology.
Technology professionals and businesses are adopting Chinese AI models, including Kimi K3, DeepSeek, and GLM-5.2, citing their competitive performance and significantly lower operating costs for routine tasks such as document drafting, email management, coding, and business automation.
According to media reports, San Francisco-based Mozilla Chief Technology Officer Raffi Krikorian recently switched to Moonshot AI’s Kimi K3 for many of his daily tasks, replacing Anthropic’s Claude chatbot. Before that, he had been using GLM-5.2, developed by Chinese startup Z.ai, for managing calendars, documents, and emails.
The trend is extending beyond individual users. Cryptocurrency exchange Coinbase has reportedly begun using Chinese AI models to reduce operational costs, reflecting growing industry interest in affordable AI solutions. Analysts say the lower pricing of Chinese models is becoming increasingly attractive as businesses deploy AI agents capable of handling complex workflows.
The growing acceptance of Chinese AI comes despite escalating tensions between Washington and Beijing over artificial intelligence. The Trump administration has imposed restrictions on China’s access to advanced AI chips and key technologies, while warning of additional measures to safeguard American intellectual property.
The administration recently accused Chinese AI startup Moonshot AI of using covert techniques to build its Kimi K3 model by leveraging Anthropic’s technology. Several American AI companies and lawmakers have alleged that Chinese firms employ “distillation” techniques to replicate the capabilities of U.S.-developed AI systems. China has rejected those allegations as unfounded.
Competition in the global AI industry has intensified since the emergence of DeepSeek, whose AI models demonstrated performance comparable to leading U.S. systems while operating at substantially lower costs. Since then, Chinese companies have introduced several new models, including GLM-5.2, Kimi K3, and Alibaba’s Qwen3.8 Max, intensifying competition in the rapidly evolving AI market.
Industry experts say the latest generation of Chinese AI models has narrowed the performance gap with leading platforms developed by OpenAI, Anthropic, and Google. Many businesses now view these models as sufficiently capable for most commercial applications without the higher costs associated with premium AI systems.
A recent report by Goldman Sachs said Chinese AI models have entered a “critical stage” for broader global adoption, driven by increasing demand for cost-effective AI solutions. Analysts noted that as AI services are priced according to the number of tokens processed, affordable models are likely to gain wider acceptance among enterprises seeking to reduce operating expenses while expanding AI deployment.
(Agencies)
