Chinese AI models

Elon Musk said Chinese AI models are generally outstanding and that China leads the world on performance per unit of compute. The remarks were carried by the South China Morning Post alongside comments in which he also praised Xi Jinping's leadership, drawing wide attention and debate over whether the praise reflects genuine technical assessment or diplomatic flattery.

Chinese artificial intelligence models are rapidly rising in global popularity, prompting concern among officials in Washington. The trend suggests China's AI developers are becoming competitive with leading US systems, intensifying debate in the United States over export controls, national security and how to respond to the country's fast-growing AI industry.

Elon Musk has given a new full interview to CMG, China's state broadcaster, covering a broad range of topics. The discussion touches on Xi Jinping, the Tesla Shanghai factory, the Cybercab rollout, the pace of AI breakthroughs, Grok, SpaceX and Tesla data for real-world AI, and Chinese AI models and the compute gap. The interview is drawing attention for Musk's engagement with Chinese leadership and industry at a moment of high US-China tech tensions.

Chinese-developed artificial intelligence models, offered at low cost and with open access, now account for the majority of traffic from developers worldwide building on large language models. The trend is drawing concern in Washington, where officials worry that widespread reliance on Chinese AI infrastructure could give Beijing strategic and technological leverage over the global software ecosystem.

Chinese AI lab StepFun has unveiled Step 5 Preview, a sparse mixture-of-experts model with roughly 600 billion total parameters and about 27 billion active per token. The model supports a one million token context window and is designed for long-horizon agent work, with open weights. Observers are noting the specifications and what the release means for competition among Chinese AI labs and open-weight model development.

Huawei has released openPangu 2.0, its AI software stack, as an open-source project. The move gives developers direct access to Huawei's AI tooling and signals the company's effort to build a broader developer ecosystem around its AI technology, in line with a wider industry trend of opening up foundation model and AI infrastructure software.

Moonshot AI, the Chinese artificial intelligence firm behind the Kimi models, is reportedly seeking access to additional Nvidia Blackwell chips. The report comes roughly a week after a Trump administration official flagged a potential breach of US export controls on advanced semiconductors. The case highlights ongoing tension between Washington's restrictions on cutting-edge chip exports to China and Chinese AI companies' demand for leading-edge hardware to train their models.

A Chinese robotics startup says it could achieve a ChatGPT-style breakthrough in robot intelligence, often called a 'robot brain', as soon as next year. The claim suggests rapid progress toward general-purpose AI for robots, allowing machines to learn and adapt the way large language models do, and would mark a major milestone in China's push to compete in embodied AI.

Treasury Secretary Scott Bessent said the Trump administration will scrutinize open source AI models for intellectual property theft, warning that Washington has the ability to impose sanctions. The remarks come amid growing buzz around Kimi K3, an open source model from China's Moonshot AI, intensifying debate over whether freely released foreign AI models pose a risk to American technology firms and innovation.

Alibaba has launched Qwen Intelligence as a full-stack agentic AI platform designed for smartphones. The platform is positioned to let phone makers run AI agents that can handle tasks on a user's behalf, extending Alibaba's Qwen model family beyond cloud services and into on-device mobile experiences. Coverage so far frames it as Alibaba's push to compete in the fast-moving smartphone AI space, where Google, Apple and Chinese rivals are also racing to embed assistants.

Researchers at the Centre for Economic Policy Research argue that the European Union's slow pace of innovation in frontier AI models leaves it exposed in cyber defence and undermines its goal of strategic autonomy. The piece warns that failing to innovate carries real security and economic costs, as the EU remains dependent on foreign technology in critical areas.

Investors and analysts are debating whether Alibaba's heavy spending on artificial intelligence can be sustained. The Chinese e-commerce giant has committed large sums to AI infrastructure and model development, prompting questions about returns and the impact on profitability. Market watchers are weighing the long-term payoff of its AI push against near-term cost pressures.