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Chinese AI Models Gain Ground In The U.S. As Companies Seek Lower AI Costs

Chinese-built AI models are gaining traction among U.S. businesses as improving performance and significantly lower costs prompt companies to rethink their reliance on leading American systems.

Models from developers including DeepSeek, Z.ai and Alibaba are increasingly being viewed as viable alternatives to offerings from OpenAI and Anthropic, particularly for tasks where cutting-edge performance is not essential.

Open-Source Models Gain Ground

According to OpenRouter, a platform that provides developers with access to multiple AI models, Chinese models have accounted for more than 30% of tokens used by U.S. companies each week since early February, with their share peaking at 46%.

That marks a sharp increase from an average of 11% over the previous year, reflecting growing demand for open-source and open-weight models as businesses become more focused on controlling AI costs.

The shift comes as Washington tightens oversight of advanced AI technologies. In June, OpenAI delayed the release of a new model at the request of the U.S. government, while export restrictions on Anthropic’s Mythos and Fable models were later lifted.

“Chinese AI models are particularly attractive to American companies now as AI costs skyrocket,” Kyle Chan, a fellow at the Brookings Institution’s John L. Thornton China Center, told CNBC. “Companies are becoming much more cost-conscious.”

Cost Is Driving Adoption

As enterprises scale AI deployments, many are shifting routine workloads to lower-cost models that deliver comparable performance. Unlike most proprietary systems from OpenAI, Anthropic and Google, open-source and open-weight models allow developers greater control over deployment, customization and operating costs. AI startup Lindy recently migrated all of its workloads from Anthropic’s Claude models to DeepSeek.

“We did it, and you could see that cost curve go down, like, crash to the ground,” CEO Flo Crivello told CNBC, adding that the move is expected to save the company millions of dollars.

Vercel also reported rapid adoption of Z.ai’s GLM 5.2 model after its June launch.

“Price is doing the work here,” said Harpreet Arora, the company’s head of agentic infrastructure. “When a task doesn’t need the best model, teams are beginning to route it to the cheapest one that’s good enough.”

According to OpenRouter, some Chinese open-source models can cost between 60% and 90% less than comparable offerings from OpenAI and Anthropic.

Narrowing The Performance Gap

Lower prices are only part of the story. Chinese AI models are also closing the performance gap with leading U.S. systems.

Chan estimates they now trail the most advanced American models by roughly six to nine months, while OpenRouter’s Justin Summerville said the latest open-source models perform well enough for all but the most demanding AI workloads.

GLM 5.2 came within one percentage point of Anthropic’s Opus 4.8 on a widely followed agentic benchmark while costing roughly one-fifth as much. Lindy also reported performance improvements after switching to DeepSeek V4.

“Chinese models like Z.ai and Alibaba’s Qwen are becoming attractive options because they offer a compelling balance of performance and cost,” said Cien Solon, founder and CEO of LaunchLemonade.

As AI adoption accelerates, companies are increasingly weighing whether the highest-performing proprietary models justify their premium pricing. For many everyday workloads, a growing number are concluding that lower-cost Chinese alternatives are good enough.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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