China Morning Missive
Keeping with the AI theme, and the competitive landscape, the linked article from Bloomberg provides some fantastic context.
I was aware that Chamath Palihapitiya noted on the All In podcast that he and his team had migrated to Kimi K2 given its better performance and cost. Well, it now seems as though an increasing number of Silicon Valley shops are building models via the aggressive usage of Chinese open sourced/open weight models
That's kind of the entire point isn't it?
Billions in valuations are being built on Chinese models and, of course, there's been no actual commentary by these very same groups as to just how critical these Chinese AI models are for development.
Perhaps the one quote to include here from the article would be the following.
"Data from Hugging Face’s platform compiled by the ATOM Project, a US coalition in support of open-source AI, confirmed that. Chinese models have overtaken the US in terms of cumulative downloads by developers."
Once again, the Chinese models are open source and, once again, this is the entire point.
The secret is now out and you should expect the rumblings of a blow back in very short order. The threat of these Chinese models reaching escape velocity is very real. There will be a "on the grounds of national secruity" campaign forthcoming without question. Regulatory capture will demand it!! Besides, the national security threat rationale is pretty much the only play in the American playbook these days.
But here's the main point that I wish to make this morning. Consider how all the shifts in American AI developed occured in the post-Deepseek world. Now recall that Deepseek only hit the zeitgiet back in February, just nine months ago.
No wonder why Sam Altman is showing signs of becoming unhinged.
https://www.bloomberg.com/opinion/articles/2025-11-09/how-much-of-silicon-valley-is-built-on-chinese-ai
