- US AI strategy relies on proprietary, locked-down models, while China adopts an open-weights approach.
- AI models lack strong moats; switching between them is easy via APIs, making enterprise services the real differentiator.
- China's open models exploit US export controls by turning compute disadvantages into distribution advantages and commoditizing the AI layer.
- The performance gap between US frontier models and open models is closing, with Chinese models claiming comparable capabilities at lower costs.
- US companies prioritize short-term profits and face misaligned incentives, risking economic fallout if AI spending declines due to ecosystem weaknesses.
- Open technologies foster permissionless innovation and ecosystem benefits, contrasting with locked-down practices that limit global adoption.