Oh they need control of models to be able to censor and ensure whatever happens inside the country with AI stays under their control. But the open-source part? Idk I think they do it to mess with the US investment and for the typical open source reasons of companies: community, marketing, etc. But tbh especially the messing with the US, as a european with no serious competitor, I can get behind.
They're pouring money to disrupt American AI markets and efforts. They do this in countless other fields. It's a model of massive state funding -> give it away for cut-rate -> dominate the market -> reap the rewards.
It's a very transparent, consistent strategy.
AI is a little different because it has geopolitical implications.
This is the rare earth minerals dumping all over again. Devalue to such a price as to make the market participants quit, so they can later have a strategic stranglehold on the supply.
This is using open source in a bit of different spirit than the hacker ethos, and I am not sure how I feel about it.
It is a kind of cheat on the fair market but at the same time it is also costly to China and its capital costs may become unsustainable before the last players fold.