Chinese AI models gain US ground on cost

Chinese AI models are increasingly winning over US companies, thanks to their rock-bottom prices. According to CNBC, platforms like OpenRouter show Chinese models now account for over 30% of weekly traffic since February, peaking at 46%. Last year, that number was just 11%. DeepSeek and Z.ai are leading the charge, with per-token costs ranging from 60% to 90% cheaper than US rivals like OpenAI and Anthropic. The startup Lindy, for instance, switched entirely from Claude to DeepSeek, saving millions annually. While the price gap widens, the performance gap narrows. Experts estimate Chinese models lag behind US leaders by only six to nine months across key areas like cybersecurity, coding, math, and reasoning. This trend signals that the AI race is no longer just about who builds the best model — it’s about who can deliver great performance at a fraction of the cost. Why it matters: Cheap, competitive AI models from China could democratize access to advanced AI for startups and enterprises globally, challenging the US dominance model.