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I don't get this. How can Chinese models be so performant if they are spending a tiny fraction of US investment. If this difference in investment is down to research investment, then there is something I'm not getting? And, if Chinese models are open, how is it that they can keep ahead of US? Finally, if all this is true, the investors in US AI business is dangerous territory ... i would be running away from that inflated investment. Of course i barely understand AI ...
Partly, the Chinese are distilling closed source models, and OpenAI and Anthropic's attempts to stop this have only succeeded in making their outputs less transparent. Partly, the actual frontier of AI is currently mostly vibes and marketing, as everyone's cheated the tests so badly that the only way to stay in the running is to cheat. Partly, that weve passed the point where even an honest evaluator could say which general purpose model is better than another, since their performance fluxuates wildly from task to task.
*fluctuates
Very cheap electricity + a stronger education system + having access to the work of other open-source groups
Chinese schools do have reputation for being extremely difficult and China invests more in actual education.
Combine that with most US funding being a giant Ourobouros of AI companies funding eachother...