Chinese AI Gains Quiet Foothold in Silicon Valley

 Open-weight models attract startups despite export restrictions

Thu Nov 13 2025
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Key Points

  • Chinese AI models such as Alibaba’s Qwen, Z.ai’s GLM, and DeepSeek are increasingly used by U.S. startups for cost efficiency and accessibility.
  • OpenRouter data shows Chinese models occupy seven of the top 20 global usage spots.
  • Analysts say U.S. export controls have not fully blocked the adoption of Chinese AI in the U.S.
  • Pakistani tech stakeholders may benefit from low-cost access, though governance and dependency risks remain.

ISLAMABAD: Chinese artificial intelligence (AI) models are quietly making inroads in Silicon Valley, with several U.S. startups reportedly integrating them into operations for their cost efficiency and flexibility.

According to a report by Al Jazeera, models developed by Alibaba’s Qwen, Z.ai’s GLM, and DeepSeek are being favoured for their open-weight design, which allows developers to access model parameters directly.

Data from developer platform OpenRouter indicate that Chinese-built models now occupy seven of the top 20 positions globally, underscoring growing adoption among startups. Analysts cited in the report suggest that this trend reflects a gap in U.S. export controls, which aim to restrict China’s access to high-end AI technologies but have not prevented the deployment of cost-effective models in practical applications.

U.S. companies have cited speed and affordability as reasons for adoption. Airbnb reportedly integrated Alibaba’s Qwen model for specific AI functions, while venture-backed Social Capital has deployed Moonshot’s Kimi K2. Experts say these choices reflect a shift in AI competitiveness, where open access and low-cost deployment are increasingly critical, particularly for startups operating on limited budgets.

Machine-learning researcher Nathan Lambert told Al Jazeera that Chinese open-weight models “have become a de facto standard among certain segments of U.S. startups,” highlighting how accessibility can drive rapid adoption even when regulatory barriers exist. Analysts caution, however, that highly regulated sectors with strict data-security requirements may still rely on Western AI solutions.

For Pakistan, the expansion of Chinese AI presents both opportunities and challenges. Lower-cost models could accelerate AI adoption in local startups, universities, and research initiatives, while creating avenues for learning and experimentation. At the same time, reliance on externally developed models raises concerns over governance, data security, and long-term dependency, requiring careful oversight by regulators and policymakers.

The developments signal that leadership in AI is no longer solely determined by computing power or financial investment. Accessibility, openness, and cost efficiency are emerging as critical factors, reshaping the global landscape and offering both opportunities and challenges for emerging tech ecosystems such as Pakistan’s.

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