Chinese AI models are undercutting OpenAI and Anthropic on price

Chinese AI models are driving down costs faster than anyone expected. That is a problem for OpenAI and Anthropic. They built their businesses on the assumption that they could charge a premium. Now they are being undercut.

The source is thin. It does not name exact prices, nor does it name the Chinese companies. It simply states that Chinese models are cheaper and that this is a threat to OpenAI and Anthropic. We will not invent numbers that are not in the source.

What we do know is the direction. The race is moving fast. The companies that move first on price will take the market. The companies that wait will lose it.

This is not a Silicon Valley story. This is a story about who gets to build the tools that the rest of the world uses. If the cheapest models are Chinese, then the rest of the world will use Chinese models. That is the reality.

Why this matters for us:
If the cheapest AI is Chinese, then the tools our families use to run their businesses will be controlled by companies that do not answer to our communities, and that changes who gets to write the rules.