Cheaper, open and intelligent: Chinese AI models gain ground, as they make inroads in the US - AP News

What the report says

The Associated Press reports that Chinese artificial intelligence models are gaining users in the United States as executives and companies look for less expensive tools that are increasingly capable. The report highlights startups including Moonshot AI, Z.ai, also known as Zhipu, and DeepSeek, whose models are being used for routine business and productivity work. AP cites Mozilla chief technology officer Raffi Krikorian, based in San Francisco, as one example of an American technology leader using Moonshot’s newly launched Kimi K3 after previously trying Z.ai’s GLM-5.2.

AP says cost is a central reason for the shift. Coinbase is among U.S. companies described as moving toward Chinese models to reduce expenses, while a North Carolina technology executive told AP he uses DeepSeek for business development tasks because many users do not need the most advanced U.S. frontier systems for everyday work. The report also cites Goldman Sachs research saying Chinese models are approaching a key point for broader adoption, especially as AI agents increase demand for cheaper processing.

The trend is unfolding amid intensifying U.S.-China technology competition. AP notes that Washington-led restrictions already limit China’s access to advanced chips, and U.S. officials have warned of possible additional sanctions. The Trump administration accused Moonshot of using covert but not necessarily illegal methods tied to Anthropic’s technology, while some U.S. politicians and AI firms have alleged improper model “distillation.” Beijing rejects those claims.

The article frames the growing use of Chinese AI in the U.S. as a challenge for American AI companies: unless policymakers impose outright restrictions, lower-cost models from China may continue attracting developers and businesses seeking practical performance at reduced prices.