As someone who actually approves $$ for tech vendors in an American company, I can tell you that no matter how cheaply China-based services become, they still aren’t going to be seriously considered. Anthropic and OpenAI are based out of San Francisco. Legal jurisdiction to resolve contract disputes, breaches of confidentiality, etc. can be resolved in a fairly straightforward way between two American companies, especially when they are headquartered in the same court district.
Chinese companies exist inside of a legal safe harbor where they have less incentive to play by the rules, and a much lower risk of consequences for getting caught breaking them. The risk isn’t worth the perceived savings.
One of the main features of Deepseek is that you can run it yourself. It doesn’t matter if Deepseek are based in China if you run the model on your own servers and thus guarantee that your data doesn’t leave your own data center.
thats one way to make sure openai can stay competitive
As someone who actually approves $$ for tech vendors in an American company, I can tell you that no matter how cheaply China-based services become, they still aren’t going to be seriously considered. Anthropic and OpenAI are based out of San Francisco. Legal jurisdiction to resolve contract disputes, breaches of confidentiality, etc. can be resolved in a fairly straightforward way between two American companies, especially when they are headquartered in the same court district.
Chinese companies exist inside of a legal safe harbor where they have less incentive to play by the rules, and a much lower risk of consequences for getting caught breaking them. The risk isn’t worth the perceived savings.
One of the main features of Deepseek is that you can run it yourself. It doesn’t matter if Deepseek are based in China if you run the model on your own servers and thus guarantee that your data doesn’t leave your own data center.
True but you can run Linux on your own machine but it doesn’t stop anyone from paying AWS or Microsoft to handle it for them.
Give it 6 months and Amazon will be running this model for you “serverless” with a code name making it seem like their own product.
they do this with other models
Yes but people will pay redhat Linux to use a distro with support. Also almost the entire US internet server infrastructure runs on Linux.
So yeah a company can provide an open source product with commercial support
never seen this happen in my 20 years career
100%
It’s as crazy as foreigners holding Chinese stocks