Western firms shift to Chinese AI models, challenging US AI power

(MENAFN) An increasing number of major Western companies are turning to Chinese artificial intelligence models, signaling a potential shift in the balance of power within the global AI sector, according to recent reports.

Leading corporations such as HSBC, Standard Chartered, and Saudi Aramco have reportedly begun implementing or testing AI technologies developed by Chinese firms like DeepSeek and Alibaba. Even American tech giants such as Amazon Web Services, Microsoft, and Google are now offering DeepSeek’s services to clients, despite ongoing concerns raised by the U.S. government regarding data security.

The growing appeal of Chinese AI is largely attributed to its ability to deliver competitive performance at significantly lower costs. Research from Sensor Tower shows that DeepSeek has reached 125 million downloads worldwide, while ChatGPT has recorded around 910 million.

One key factor boosting Chinese AI’s global reach is the open-source nature of many of its models, which allows for easier customization and deployment. For instance, the University of the Witwatersrand in South Africa selected DeepSeek for a research initiative due to its offline capabilities and adaptability. Likewise, Japan’s Ministry of Economy opted to use Alibaba’s Qwen model over American counterparts. On platforms like Latenode, reports suggest that one in five users globally now prefer DeepSeek for creating AI applications.

Analysts warn that this trend could significantly weaken U.S. leadership in setting international AI standards. During a recent U.S. Senate hearing, Microsoft President Brad Smith cautioned, “The No. 1 factor that will define whether the US or China wins this race is whose technology is most broadly adopted in the rest of the world.”

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