China narrows AI gap with US as startup launches world's largest open model

A Chinese startup has released what it calls the world's largest open AI model, a move that appears to directly narrow the technological gap between China and the United States in the race for artificial intelligence supremacy.

The new model competes with some leading systems from US companies Anthropic and OpenAI, according to reporting by Reuters. The launch immediately rattled markets, sending shares in AI and semiconductor companies sliding.

The development underscores a broader Chinese strategy to dominate through open-source AI. Chinese alternatives to Nvidia hardware are also gaining traction, and President Xi Jinping has pitched China as an AI partner to the developing world, positioning the country as both a technology leader and a standard-setter.