This is pure speculation. China labs are geeks and nerds like some of us. They were amazed at LLM and like everyone want to build their own. They were happy to get meaningful next token predictions. I think most of you forgot how bad these things were 3 years ago compared to today. There was nothing to undercut, it was just geeks putting out their toys and saying, "Look, I built something cool". That became the culture and led to were we are now. All this idea that they are trying to undercut the monopoly is speculation. Google still releases open models, Cohere releases command-a, Mistral releases their model too, Arcee and Thinking Machine have released models too. It's just that Chinese models have gotten good and are also leading in the open weight category and USA has a very strong paranoia of Chinese models hence this talk. Plus every time they release something, some of the labs cry, "they copied us, distillation, the bad guys have done it again!"

So what we are seeing is nothing more but geeks doing geeky stuff, the only one that has serious demonstrated that there are possibly be had is Anthropic and the Chinese labs are beginning to copying them in terms of user plans, coding tools, etc. They are giving away the model to show it's great. Once they have the compute to serve the world and they have a model just as good or better than top model, they will go close to keep all the profit.