How Chinese companies disrupted Silicon Valley giants: key factors and impact

Open-source Chinese models in artificial intelligence, such as "DeepSeek," are establishing themselves in Silicon Valley's market, thanks to their performance comparable to American models and their lower costs, which are approximately 16 to 20 times cheaper than American models. This shift is driven by financial pressures and strategic changes, such as the rising costs of using American models and export restrictions. These factors are prompting European and American companies to adopt Chinese alternatives to improve efficiency and reduce expenses, while American companies continue to lead in infrastructure and security features.

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