What's next for Chinese open-source AI

Chinese open models are spreading fast, from Hugging Face to Silicon Valley. In this photo illustration, the DeepSeek apps is seen on a phone in front of a flag of China on January 28, 2025 in Hong Kong, China. The past year has marked a turning point for Chinese AI. Since DeepSeek released its R1 reasoning model in January 2025, Chinese companies have repeatedly delivered AI models that match the performance of leading Western models at a fraction of the cost. Just last week the Chinese firm Moonshot AI released its latest open-weight model, Kimi K2.5, which came close to top proprietary systems such as Anthropic's Claude Opus on some early benchmarks. The difference: K2.5 is roughly one-seventh Opus's price.