Luke Vargas

Josh, in a nutshell, what's China's AI strategy?

Tatia, DeepSeek is still very much around, but there's a different case study in the form of an AI model suite from Chinese company Alibaba that's called Quen that you and your colleagues have been drawing attention to lately that showcases sort of another element of China's AI strategy.

Tell us about that.

You mentioned adoption in the West.

The U.S.

venture capitalist Martin Quesada was quoted in The Economist saying 80 percent of U.S.

entrepreneurs that he's coming across are using Chinese made AI models.

Josh, are we getting kind of a Huawei 5G redo here where this very alluring technology gets the world to sign into bigger Chinese systems?

All right.

Chinese AI there differentiating itself from other products out there in the market and Beijing promoting that.

We've got to take a short break.

But when we come back, how that's all going over with America's tech giants.

Stick around.

Now, Tatia, in addition to these Chinese AI companies potentially opening up new markets for themselves, it sounds like they may be chipping away at the pricing power big U.S.

tech firms have been commanding.

And if I understand this correctly, this is not just some philosophical debate about whose vision of the science fiction future is correct.

The difference between the Chinese and U.S.

private sector focus here maybe boils down to who the customers of AI will be, who might be paying for AI services in the future.

Is that right, Tatia?

I'm envisioning here, I don't know, the Egyptian government wanting to model the Nile River and how it would respond to, let's say, a bad harvest.