146
American Tech Companies Are Suddenly Sweating Bullets as China Catches Up on AI
(finance.yahoo.com)
this post was submitted on 10 Jul 2026
146 points (94.0% liked)
Technology
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China is spending a fraction of what US companies are burning through. Profitability will be a lot lower bar. Plus they've been investing in renewable energy to power it.
I've also become more and more convinced that these colossal huge general models are not necessary for many useful tasks and smaller more focused models will do just fine for a lot of the workloads people will actually be willing to pay for. Particularly once these companies have to stop selling at a loss.
What's convincing is that hobbyists are taking open source AI models and their own batch of training data in order to do small jobs. They need more LORAs and more massaging of the prompt, and they might take minutes or hours instead of seconds to generate, but they absolutely work.
It's especially useful if you want to make slop of a category forbidden on the provider servers.