American AI is expensive. Some startups are turning to cheap Chinese models
U.S. startups are increasingly switching from expensive American AI models to cheaper Chinese alternatives like DeepSeek-V4 to manage operational costs. While American models currently lead in capability, the cost-efficiency of Chinese open-source models is driving a significant shift in the industry.
Why it matters
This trend highlights the economic pressure on AI startups and the growing global competition in the artificial intelligence sector.
SAN FRANCISCO — Flo Crivello's San Francisco-based startup, Lindy.ai, creates artificial intelligence "assistants" to manage your email and calendar. At first, the company leaned heavily on Anthropic's top-of-the-line AI models.
The article presents a factual business trend without taking a political stance, balancing the cost benefits against the technological lead of U.S. firms.
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