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China's open-source embrace upends conventional wisdom around artificial intelligence

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China is embracing open-source AI models in a trend market watchers and insiders say is boosting AI adoption and innovation in the country.

Open-source shift has been spearheaded by AI startup DeepSeek, whose R1 model released earlier this year challenged American tech dominance.

On March 16 , Baidu released the latest version of its AI model, Ernie 4.5 , as well as a new reasoning model.

OpenAI started the AI frenzy when it released its ChatGPT bot in November 2022 .

The open-source trend has put in to question the massive funds raised by companies such as OpenAI .

The company which started as a nonprofit in 2015 is moving towards towards a for-profit structure.

On the other hand, Chinese companies have chosen the open source route to compete with the more proprietary approach of U.S. firms.