17.03.2025 China’s AI Industry Accelerates Open-Source Adoption

Just one month after the launch of DeepSeek’s R1 reasoning model sent ripples through Wall Street and the global tech industry, the Chinese start-up’s commitment to open-source innovation is already reshaping the country’s technology landscape.

Big Tech Joins the Open-Source Movement

Chinese tech giants are not far behind in this trend. Baidu has pledged to make its Ernie large language models (LLMs) open source, while Alibaba—owner of the South China Morning Post—has intensified its own open-source commitments. This week, Alibaba announced it would open-source its Sora-like text-to-video models, and it plans to release its latest Qwen2.5-Max model, along with a new reasoning model built on its foundation.

Addressing Infrastructure Challenges

Cloud service providers have also been quick to integrate DeepSeek’s open-source models into their platforms. Recognizing the increasing need for AI infrastructure, Alibaba has committed more than US$52 billion to AI-related infrastructure development over the next three years—marking the largest private-sector AI investment in China’s history. This move is expected to fuel competition among the country’s tech giants and bolster China’s AI capabilities.

The Rise of Specialized AI Models

Beyond general-purpose AI, the shift toward open-source models is driving the emergence of specialized AI applications. Yang Hongxia, an AI scientist and former Alibaba researcher now based at Hong Kong Polytechnic University, is developing domain-specific models designed for affordability and efficiency.

Yang notes that a significant challenge in AI development is the limited availability of specialized knowledge on the internet, preventing it from being effectively integrated into AI systems. However, as open-source general-purpose models become widely accessible, researchers and developers can more easily tailor them to specific industries and expertise areas.

China’s open-source AI movement is still in its early stages, but with major players committing resources and expertise, the trend shows no signs of slowing down. Whether in AI models, cloud infrastructure, or chip development, open-source innovation is poised to play a defining role in China’s technological future.

Source: Matt Haldane, SCMP Newsletter