Rather than fight US frontier AI control, China is thinning the margins of premium AI with cheap-enough, good-enough models for mass adoption.

According to Reuters, Chinese authorities are looking into restricting foreign access to the country's most powerful AI models. Alibaba, Bytedance, and Z.ai would all be affected.…

Rather than fight US frontier AI control, China is thinning the margins of premium AI with cheap-enough, good-enough models for mass adoption.

As AI models become interchangeable commodities, the contest is down to service prices – which are driven by electricity output and cost.