Visitors at the booth for Chinese AI Startup Moonshot's Kimi K3 during the World AI Conference in Shanghai, China on July 17, 2026.
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Chinese AI models are gaining popularity in the U.S. for their affordability and efficiency. More American executives and companies are switching to Chinese models by startups such as DeepSeek, Moonshot AI and Z.ai for daily tasks. These models are way cheaper and nearly as advanced as those of their U.S. rivals, technology analysts say. The rapid rise of Chinese AI this year, with stronger players beyond last year's DeepSeek moment, highlights the increasingly competitive AI race between the U.S. and China. Despite blocks on their access to some advanced technologies, Chinese models have become serious global competitors to their U.S. counterparts. Analysts say U.S. models are still superior overall, but Chinese open-source models are closing the gap.