They're pouring money to disrupt American AI markets and efforts. They do this in countless other fields. It's a model of massive state funding -> give it away for cut-rate -> dominate the market -> reap the rewards.
It's a very transparent, consistent strategy.
AI is a little different because it has geopolitical implications.
When it's a competition among individual producers, we call it "a free market" and praise Hal Varian. When it's a competition among countries, it's suddenly threatening to "disrupt American AI markets and efforts". The obvious solution here is to pour money into LLM research too. Massive state funding -> provide SOTA models for free -> dominate the market -> reap the rewards (from the free models).
I can’t believe I’m shilling for China in these comments, but how different it is for company A getting blank check investments from VCs and wink-wink support from the government in the west? And AI-labs in China has been getting funding internally in the companies for a while now, before the LLM-era.
It's a very transparent, consistent strategy.
AI is a little different because it has geopolitical implications.