The Chinese have been right behind OpenAI and Anthropic for ~18 months now.
DeepSeek didn't do to OpenAI and Anthropic what nearly everybody claimed they would.
Every single person on HN that loudly proclaimed the end was nigh for GPT & Co. due to DeepSeek, was wrong. They were humiliatingly wrong, and they'll never own up to it. The reason those people were so very wrong, is the same exact reason the Kimi crowd is wrong now. And it's very obvious that they're wrong, but they have intense emotional blinders on. Their thinking process is hyper emotionalism: they want a certain outcome, regardless of if reality aligns to that or not. They're making emotional wishes about how they want things to turn out, and pretending those magic wishes are grounded in reason.
It takes enormous resources to run something equivalent to GPT 5.6 or Fable. Nobody can or wants to do that outside of very limited situations - if you can just reasonably pay as you go instead. As it turns out, you can just pay as you go with GPT and Fable. Their businesses have gotten radically larger since DeepSeek launched. Get it yet?
Domestic China is the only very large audience for their own models, so long as OpenAI and Anthropic stay top tier.
All the hype online from the forums about Kimi, is worthless: those people hyping it can't even come close to running it locally, which is the fantasy. So why are they hyping it? Why did they hype DeepSeek just the same, and learn nothing from its total failure to actually take down OpenAI and Anthropic? Rhetorical questions with obvious answers.
Kimi poses zero actual threat to OpenAI and Anthropic. Those companies will continue to pile up the subscriptions and API usage. Check out GPT's subscriber base today vs when DeepSeek launched. Get it yet? When Model X launches out of China in a year, we'll have this same conversations all over again, and the hypsters will have learned nothing.
While the Kimi fawning is endless, OpenAI will just keep piling up subscriber counts, and Anthropic will keep piling up API usage. Then OpenAI is going to staple a gigantic ad system onto GPT. China can't compete in the model-as-a-service business globally, for the exact same reason they failed so miserably to compete in search globally.
China won in cloud services? Nope, not even close. They had to clone AWS just to try to keep up.
China won in mobile? Nope. Although they're very competitive there.
China won in search? Nope. Baidu who?
China won in ecommerce? Nope. Their dominance is overwhelmingly domestic.
China won in software? Nope. Windows is US. Android is US. iOS is US. MacOS is US. Linux is US/Europe/Global. Look at the top 50 largest software companies.
China won in silicon? Nope. Look at the top 50 companies.
China won in .... India and Latin America can manufacture iPhones now.
But sure, China's the obvious winner this time. Good luck.
You mean other than the zillion dollars of infrastructure you need to run these systems for a billion users. And the extreme cost to sustain that operation day to day. And the cost to upgrade the infrastructure forever.
Remind me which entities (govt or corporate) are going to subsidize that forever. Remind me which entities are going to front the cost just to scale up.
By that premise - wherein you forget everything other than the first ingredient (the model) - Google has no moat either (got $100 billion dollars lying around?). Nor does Uber (have tens of billions in your bank account to clone their business?).
I'm certain building an app (Uber), or building a search engine (Google), is the super duper hard part.
Slapping a GUI on Linux will kill Windows, any day now.
China isn't undercutting anything. Kimi has to be hosted somewhere and is extraordinarily expensive to operate at Fable-levels of capabilities. The moat is (and will always be) the cost to actually operate these models, and that cost will continue to soar, it will not reverse, and the hardware will never keep up such that at-home use somehow becomes economical.
It's like releasing a cutting edge search engine, proclaimed to be on par with Google. Oh yeah, I forgot to mention, you need to actually run it somewhere. One of the core moats for Google has been the cost to scale and compete globally with a search engine, which only a few entities on earth could even attempt. Somehow the HN crowd forgets this every single time. The same claims were endlessly made regarding Uber, as though the app was the hardest part of competing with Uber. Here's a hint: the model isn't the only super hard part of the total process at this point. Try running something akin to GPT 5.6 for a billion users, see how much that costs.
The winners will be the owners of the subscriptions and API usage. That's going to be OpenAI and Anthropic as of now, possibly Google will stay in the fight with their scale advantage focused on the consumer. It will never be the open weight models out of China. Who is going to invest the trillion dollars into infrastructure needed to run the latest version of Kimi 3-5 years out, for a billion users? There's only one entity that would ever consider it, and that's China domestic.
And the real money (for a sustainable business model allowing for constant massive reinvestment & infrastructure maintenance) is in pairing up advertising, which is another spot where the open weight models from China will never compete. It doesn't matter if the HN crowd hates this outcome, nothing will stop it from being the future core of mass consumer usage. And the business use will stay with subscription + API use as well: the best option for that today is OpenAI and Anthropic.
People endlessly claimed the same thing about DeepSeek upon its release. they claim it every single time a very large cutting edge model is released out of China. It's a combination of propaganda, some truth, and the faux open culture desperation to see big tech get destroyed (somehow better if big China takes its place instead).
Because no VC will give you $5-$10 billion in cash to attempt a catch-up run with Anthropic, OpenAI, and Gemini at this point. Untold billions have been pushed into Grok and it can't keep up. X has had the GPUs, the engineers (reasonably), the cash and the datacenters necessary - it's a very, very, very hard task. Microsoft could afford spend $100 billion on trying to catch up and they might fail at it.
It's a critical national imperative for China. If they were to lose the AI race, it would be economically devastating over the coming decades. Their demonstrated capabilities in the open-weight space are making it fairly clear they are not going to fall behind at this juncture.
As a nation, if you don't have your own GPT equivalent, you will be beholden to a master (right now it's mainly either the US or China, pick one). The EU for example is putting their group of nations at risk in a big way by not going all in on having at least two cutting edge independent competing models (Mistal is not enough). Economically the EU is plenty large enough to accomplish that, nobody is driving the bus the right way.
> Either Chinese labs are worth more or OpenAI/Anthropic are worth less. One of those is true
The reason that's not inherently accurate is because it assumes the economic models are identical. That couldn't be further from the truth. It'd be like pretending a globally dominate Google search engine should be worth as much as eg Baidu or Yandex. No doubt Baidu is an advanced search engine, and that's not what defines its economic characteristics: the markets it operates in does, the market ownership does, the ad engine does, the ability to sell does (advertiser relationships), etc.
OpenAI is very likely to bolt on a massive, global advertising platform to GPT over the coming years (and yes, it'll take time to build up). The Chinese labs will have a very hard time replicating that to a global audience the way the US tech companies have repeatedly proven they can. OpenAI will poach proven ad system builders from Meta and Google.
The same kind of speculation questioned whether Facebook would ever have a significant business. Before that, the same was asked about Google's business.
If GPT can maintain or grow usage, the ad dollars will be there given the enormous scale. There is a hundred billion dollars plus worth of advertising waiting in the LLM space. It would be surprising if Facebook doesn't contract for example, losing ground to LLMs on advertising over the coming decade.
They seem to be expanding even across rural America. These days it's fairly common for small and medium size towns to have access to 500mbps-1gbps for $50-$90 per month, and essentially all small cities and above.
Reddit is overflowing with threads where people are getting AT&T to give them 1gbps for $30-$35 per month. Comcast has repeatedly offered me 1gbps for ~$50/m for five years locked-in. I have no practical use for it.
The US has more broadband than it knows what to do with at this point. Somebody needs to figure out a mass public use for home 1gbps+.
I assume you're not confused about the fact that DeepSeek winning would be against US self-interest, and the thriving of OpenAI + Anthropic domestically and globally is very much in the national interest of the US.
Even if both groups did exactly the same thing, it would be irrational for the US to not bias itself in favor of its own businesses.
> The abundant supermarkets were not a product of free markets, they were a propaganda piece.
The US has abundant supermarkets to this day. It was overwhelmingly a product of the market economy and remains so. The US has between 45,000 and 75,000 supermarkets (75,000 if you include supercenter stores that also sell groceries). That's not counting smaller specialty food stores.
It's a product of consumer spending capacity (net disposable income), of which the US has an enormous amount and has for over a century relative to other nations.
It's not the exchange rate. It's 30 years of economic destruction and currency devaluation as the end result of horrific spending policies. If Japan doesn't right the ship, they'll sink into middle income territory over the next 30 years. Poland and Greece are now just slightly below them in GDP per capita - and Lithuania is above them (unthinkable circa the mid 1990s).
Realistically Japan is very close to being a second tier economy. It's quite plausible that Croatia and Latvia will pass them on GDP per capita over the next decade. 7-11 Japan would be relatively inexpensive for the citizens of any affluent nation, because Japan is so much poorer than it used to be.
The world has never been thankful for the positive things the US has done. The only thing it ever garnered were the briefest of superficial nods. China gets drastically more respect with their approach than the US ever has, while doing a tiny fraction of the good.
The US saved tens of millions of Russians from starvation a century ago. Culturally they have absolutely no clue about that, they're entirely oblivious in terms of their own history. The good deeds never garnered the US any positive credit. Only the bad deeds garner the US bad credit aplenty.
An estimated 22,000 addresses, 1.1 million Bitcoin. Present value $78 billion. That would make him the 23rd richest person in the world. Bill Gates by comparison is 'only' worth $102 billion these days.
If you priced Gates backwards in gold, his $102 billion is about $13 billion two decades ago. He hasn't kept ahead of the destruction of the dollar very well.
Gemini, GPT and Claude will all have ads on the consumer side. They will go together in quasi lock-step into the ad future, because that money is gigantic and they're going to need it.
The masses will have no say in the matter. Just as they had no say in the matter with Google's ads getting ever more intrusive, or cable prices previously, or streaming prices going perpetually higher in the present, or YouTube ads, or anything else. Consumers will have no say in the matter, they'll take it and that's that.
With only three relevant competitors (maybe Mistral in Europe), there will be nowhere to flee the deployment of ads.
AWS is legitimately a giant and it should be considered in enterprise broadly. It's infrastructure more than enterprise software of course, which is where Anthropic is at. Anthropic is not trying to host the world's databases and services (at present anyway). Anthropic will however help you write software to compete with Salesforce, Oracle, SAP, et al.
Google's ad business remains far larger and more profitable than AWS. And the advertising segment is drastically larger than the segment AWS is in. Just Google + Meta = nearing $600 billion in ad sales. Amazon will soon have their own $100 billion in ad sales.