The Role of Open Source in China’s AI Economic Strategy

China’s ambition in the realm of artificial intelligence (AI) underscores a transformative vision for its economy. Open source AI represents a critical component of this shift, encouraging widespread adoption across various sectors rather than concentrating power within a few tech giants.

Shifting Economic Philosophy

According to Hisham Alrayes, CEO of GFH Financial Group in Bahrain, China’s focus on open-source models signifies a distinct economic philosophy. At a recent panel discussion in Davos regarding China’s “AI+ economy” strategy, he pointed out that this approach aims to distribute AI benefits more broadly across the economy.

AI Breakthrough: DeepSeek

DeepSeek, which represents a significant breakthrough in China’s open-source AI initiatives, epitomizes this philosophy. By leveraging open-source frameworks, DeepSeek aims to democratize access to AI’s capabilities. This contrasts sharply with the more proprietary nature of many American AI models, which tend to maintain strict control over their technologies and commercialization.

Global Competition and Innovation

Yann LeCun, former Chief AI Scientist at Meta, emphasized that DeepSeek’s success can be attributed to its open-source framework, which promotes collaborative research and development. This shared model not only enhances innovation but also provides an edge in efficiency when compared to proprietary systems.

Affordability and Accessibility

Eric Schmidt, former CEO of Google, noted that China’s open-source AI strategy could position it favorably on the global stage. By offering free access to powerful AI tools, these models become particularly attractive to governments and organizations in developing countries that may not have the resources to invest in expensive proprietary systems.

National AI Action Plan

This vision is crystallized in China’s national action plan known as “AI Plus.” As highlighted by Gong Ke, executive director at the China Institute for Next-Generation AI Development Strategies, this plan prioritizes the integration of AI technologies across various sectors, including manufacturing, healthcare, finance, and education. Clearly defined metrics aim for substantial adoption—70% penetration of AI agents and smart devices by 2027, increasing to 90% by 2030.

AI as a Utility, Not a Commodity

Ultimately, Alrayes asserts that China’s approach to open-source AI reflects a broader ambition: to transform AI from a profit-generating mechanism for a select few into a utility that drives economic value across all sectors. “This is not just about reaping profits from AI technologies. It’s about enhancing the overall economy,” he explained, emphasizing the need for a collective benefit rather than individual gain.