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China AI narrows performance gap, cuts inference costs to as little as one-hundredth

Chinese AI models are rapidly narrowing performance gaps with leading Western models while cutting inference costs to as little as one-hundredth, an analysis said. The focus is shifting from top benchmark scores to who can deploy high-performance AI cheaply and at scale. Benchmark results still show U.S. firms ahead, but Chinese models are close. Cost and open-weight strategies are boosting adoption, though political constraints and bias concerns persist.