Western Companies Adopt Chinese AI Models, Threatening US Dominance
According to a recent report by the Wall Street Journal, a growing number of Western companies are adopting Chinese artificial intelligence models, challenging U.S. dominance in the global AI industry. Major firms such as HSBC, Standard Chartered, and Saudi Aramco have begun deploying or testing Chinese AI systems, including models developed by DeepSeek and Alibaba, according to the report. Even U.S.-based cloud providers such as Amazon Web Services, Microsoft, and Google are offering DeepSeek to clients, despite alleged security concerns flagged by the White House.
The surge in global interest is driven by Chinese AI companies’ ability to offer performance on par with leading U.S. models at a significantly lower cost. Research from Sensor Tower indicates that DeepSeek has already recorded 125 million global downloads, compared to ChatGPT’s 910 million. This trend is further accelerated by Chinese developers open-sourcing their models, which encourages widespread customization and adoption across various sectors.
In South Africa, the University of the Witwatersrand chose DeepSeek for a pilot research project due to its offline capability and open-source flexibility. Similarly, Japan’s Ministry of Economy selected Alibaba’s Qwen model over U.S. alternatives. On platforms such as Latenode, a fifth of global users reportedly now prefer DeepSeek for building AI tools. Industry experts say the trend could erode U.S. influence in setting global AI standards. Microsoft President Brad Smith warned during a recent U.S. Senate hearing that the No. 1 factor that will define whether the U.S. or China wins this race is whose technology is most broadly adopted in the rest of the world.
Despite the open-source nature of Chinese models, critics argue that consumer-facing apps often reflect Chinese government policies, and with wider adoption, could allow Beijing to embed its digital standards globally. The shifting landscape has raised concerns in Washington, with lawmakers considering legislation to block federal agencies from using Chinese-developed AI.
Meanwhile, OpenAI CEO Sam Altman has warned of strategic moves by other Chinese rivals like Zhipu AI to dominate emerging markets. He claimed,