alt Hacker News> I'd expect them to shift to a model where Chinese models are hosted on Chinese infra.
You assume these Chinese companies need to make a profit. Nothing is really private in China, nothing that truly grants power, anyway.
CCP can just write off these loses as defense budget, which they basically are.
I bet that, all things considered, training 10 new Chinese frontier models costs _significantly_ less than a single modern fighter jet.
Which on itself is wild. The main issue with the discussion isn't a rift in capabilities, but a rift in the valuation model itself.
If China can match the pace and produce frontier models at a fraction of the cost of US alternatives, even without access to SOTA hardware, what is the competitive advantage for the current valuations of Anthropic and OpenAI?