Chinese AI models close performance gap with leading US systems
Technology
Chinese AI models have almost closed the performance gap with leading US systems, according to Bloomberg Intelligence.
Earlier this year, they were trailing by 15%, but now it's just a 3% difference.
The DeepSeek V4.1 Flash model even grabbed sixth place worldwide on LiveBench, showing how quickly things are changing.
Most Chinese AI firms unprofitable
Even with all this tech progress, most Chinese AI companies are struggling to turn a profit. There are more than 1,100 language models competing right now, which has led to price wars and thin margins.
ByteDance's Doubao is making money so far. Others like DeepSeek and Tencent's chatbots are still free.
Analysts say more stability and fewer players could help the industry survive long term.