This is great for competition! Chinese vendors offering a cheaper solution = what economics told me the free market was all about. I also learnt that Anthropic should get better at what they do if they want to compete. If not, somebody else will win. Or does this not apply to huge US corporations any more?
China aren't offering a cheaper solution. They are subsidizing an existing one (which is already subsidized) in order to gain foothold. The difference is that in the US subsidies come from VC, while OP implies subsidies come from the AI labs that buy the training data (which may as well also be VC backed, so just one extra hop). This isn't "the market working as intended", this is an exhaustion fight to the bottom wh…
Chinese labs are also pursuing legit frontier-advancing R&D into efficiency and publishing papers in the open, a culture that's in retreat at top American AI labs