Western Companies Shift to Chinese AI Models

(MENAFN) A growing number of prominent Western companies are increasingly integrating Chinese artificial intelligence models, posing a serious challenge to the US's grip on the global AI sector, media reported.

Corporations like HSBC, Standard Chartered, and Saudi Aramco have begun testing or deploying AI systems developed by Chinese companies such as DeepSeek and Alibaba, according to the Wednesday report. Even US-based cloud giants like Amazon Web Services, Microsoft, and Google are now offering DeepSeek to clients, despite warnings from the White House about potential security risks.

The rising global interest in Chinese AI comes as these models deliver similar performance to their US counterparts, yet at a significantly lower cost. Research firm Sensor Tower has revealed that DeepSeek has amassed 125 million downloads globally, a figure far behind ChatGPT’s 910 million but still impressive.

Chinese AI firms are also boosting their global presence by making their models open-source, promoting customization and broad adoption across industries. For instance, the University of the Witwatersrand in South Africa opted for DeepSeek in a pilot research project, citing its offline functionality and open-source adaptability. Meanwhile, Japan’s Ministry of Economy chose Alibaba’s Qwen model over US alternatives for government-related initiatives. Platforms like Latenode now report that 20% of global users prefer DeepSeek for building AI tools.

Industry insiders warn that this trend could undermine US influence over global AI standards. Microsoft President Brad Smith recently cautioned during a US Senate hearing that, “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.”

Despite the open-source nature of many Chinese AI models, critics argue that consumer applications often reflect Chinese government policies, which could lead to the spread of Beijing's digital standards globally. The shift in AI dynamics has sparked concerns in Washington, where lawmakers are contemplating measures to restrict federal agencies from using Chinese-developed AI.

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