China Leverages Open Source AI, Aiming to Reshape Economy and Broaden Benefit

China’s Open Source AI: A Catalyst for Economic Change

The adoption of open-source artificial intelligence (AI) signifies a major step towards China’s vision for a transformed economy. Hisham Alrayes, the Group CEO of Bahrain-based GFH Financial Group, explains that China is focusing on open models and large-scale deployment to allow AI benefits to permeate its entire economy rather than concentrating them among a few tech giants.

During a Davos panel discussion on China’s “AI+ Economy” strategy, Alrayes highlighted the distinctive approach China is taking to economic growth using AI. He underscored that China’s model diverges from the more closed structures found elsewhere, indicating a goal to spread the advantages of AI across the entire economic landscape.

Open Source AI: A Key Economic Strategy for China

Alrayes noted that China’s leading AI innovation, DeepSeek, embodies this open-source philosophy. Unlike many large US language models which are closed and proprietary, DeepSeek predominantly employs open-source models that have garnered global attention, thus maximize the benefits of a more open and collaborative ecosystem.

Meta’s former Chief AI Scientist Yann LeCun has attributed DeepSeek’s success to its open-source approach, suggesting it fosters efficiency and innovation by building on shared research. Similarly, former Google CEO Eric Schmidt has positioned China’s open-source AI models as potentially gaining a global edge due to their cost-effectiveness.

China’s Vision: Broad AI Accessibility and Impact

As Alrayes explains, China’s primary goal in leveraging an open model is to achieve scalability and affordability. This approach aims to benefit the entire economy rather than individual companies. It ties in with China’s “AI Plus” action plan, which prioritizes widespread implementation of AI across industries.

AI: An Economic Utility, Not a Profit Engine

Alrayes emphasizes that China’s open-source approach seeks to make AI a utility for the economy rather than a profit engine for a handful of corporations. This philosophy is at the heart of China’s strategic vision to create value throughout the economy, not just for specific companies.