IMO they hope to make AI a strongly regulated industry, with OpenAI (and Anthropic) becoming military suppliers with their stronger models, and everything Chinese or open-weight gets banned.
The competition from the open models is so strong now that this seems to be the only way to keep both companies afloat, given their dire financials. OpenAI probably hoped that they can achieve market lead and then lower the training costs (and make inference cheap enough to eventually escape the red numbers), but the opposite is happening: The competition comes closer and closer, thus training has to be kept up with full force, thus the bleeding continues.
But if they can position themselves as too important/dangerous to be available for everyone (thus this incident report and the clever mentioning of GLM 5.2), they could get the military supplier treatment and would be protected from the market.
To anyone having read about Mussolini, Italy's economy and political landscape in the 20s onward, his model of corporatism etc, the answer is obviously clear: the US. China also is authoritarian, of course, but the societal structure sharply differs from Italian fascism.
To add to that, to me it seems that the idea is that open weights vastly accelerate dissemination into and practical application in the wider economy, which seems to be the goal. They don't seem to subscribe to the AGI/singularity silliness so prevalent in the West.
The no brain solution is to electrify everything and switch legacy infrastructure to renewables, just like China does. Gas usage is down in the EU anyway.
You're right of course, but in this case the statement doesn't look that false. The source article [0] states that half of the assets is cash, so "assets" is defined a bit more freely here.
If we assume a 2026 revenue of 23B (Q1 2026 revenue x4) and costs of 70B (2025 costs * (2026 revenue / 2025 revenue)), even those 25B in cash reserves won't mean much. And this napkin math even ignores their debt obligations. So either they raise money in the range of 50-75B this year (actual money, not datacenter vouchers), or ...
The Jack Ma story is that he tried to build a predatory peer to peer lending startup to profit off of working class people getting into high interest debt traps (because they aren't credit worthy for normal credit issued by regulated banks). Which is against the law in China. China is very strict in all things that resemble shadow banking, MLM schemes etc, they even have a .1 % tax on every transaction on the HKSE, to prevent a financialization of the economy like it happened in the West.
He's quite literally responsible for more deaths than Pol Pot, there's a paper in the Lancet estimating the amount of casualities directly resulting from the sudden cancellation of USAID funds.
"Forecasting models predicted that the current steep funding cuts could result in more than 14 051 750 (uncertainty interval 8 475 990–19 662 191) additional all-age deaths, including 4 537 157 (3 124 796–5 910 791) in children younger than age 5 years, by 2030."
The owner of this LLM is sieg heiling around, openly supports extremists across the EU, actively helped Russia in its invasion of Ukraine. Someone pays for his product. What do you think, will this have political consequences or will giving this guy have no effect whatsoever?
Coal is already shrinking in the China (in absolute terms, not just as share of production) [1], and share of wind + solar is already larger than in the US [2], so I doubt China will ever reach US proportions in CO2 emissions per capita.
An additional data point to support that is that emissions intensity per GDP is clearly falling fast for China [3].
> Looking back, it's easy to say the German govt should have thrown them a billion or two to keep them afloat. However, state intervention was very unpopular at the time in economic circles, and there was much furor over bailouts following the 2008 crisis.
Absolutely, Germany essentially abandoned its position in industrial leadership solely due to neoliberal ideology. Just compare the trajectories of Germany and China in the last 20 years. One country planned and implemented a proper industrial policy, the other hummed and hawed about the infallibility of the market and thus essentially just gave up.
People around me, outside the programmer bubble, hate OpenAI with a passion. It's the symbol of antidemocratic US corporations cuddling with Trump etc, right there with Tesla. And no one outside my tech bubble has ever heard of Anthropic.
This is distinctly different than the dot com bubble were people actually were euphoric about the future unfolding before their eyes.
No one is arguing that such a thing as wealth creation doesn't exist. The question is about who or what creates it.
Which is a topic of intense discussion in economics over the last few hundred years, BTW, and the discussion here so far has shockingly few references to those.
Those taxes are the necessary condition in silly essays like this one from pg. Or why do you think those billionaires miraculously mostly end up in the US and not in countries like Sudan or Peru? I mean if those billionaires would actually be the wealth creators, not depending on society at large, they could become billionaires everywhere, right?
> George Lucas made a movie with a (small) group effort. But what made a billion dollars is his Star Wars universe which is almost entirely his creation.
If that were actually true, how come we can't predict what the next Star Wars universe will be?
Same for pop songs etc. If it were actually about objective qualities of the creation, and not just luck, the next winners of the lottery would be apparent even before they hit the theaters.
There is null inherent quality in the Star Wars universe causing the billion dollar revenue. If George Lucas wouldn't have been there at the right spot at the right time, the dominant IP would simply have been something different.
If you have kids, you can directly observer what actually happens: The IP owners dump huge amounts of money into merch and product placements everywhere, resulting in them getting in contact with the franchise before they are out of their diapers. My kids came home from daycare roleplaying lightsaber fights without any previous contact with the franchise at our home. The trick is implanting the meme (in the original meaning of the word) into kids' brains before another meme can nest in there.
Pretty sure they'll offer them at least so long as it takes to bring OpenAI and Anthropic into insolvency. Why wouldn't they? The Chinese models are way more nimble to train and run, bring in a ton of goodwill globally, and put immense pressure on the VC furnace that is the US AI sector.
And apparently OpenAI and Anthropic think so, too - why else would they try so hard to ban them instead of outcompeting them?
That is not a contradiction. Just look at social media use where you can observe the same.
People can hate on AI e.g. because they see it as a symbol of inequality and billionaires deciding important things over our heads and also actively use it.
The competition from the open models is so strong now that this seems to be the only way to keep both companies afloat, given their dire financials. OpenAI probably hoped that they can achieve market lead and then lower the training costs (and make inference cheap enough to eventually escape the red numbers), but the opposite is happening: The competition comes closer and closer, thus training has to be kept up with full force, thus the bleeding continues.
But if they can position themselves as too important/dangerous to be available for everyone (thus this incident report and the clever mentioning of GLM 5.2), they could get the military supplier treatment and would be protected from the market.