What happened
Chinese AI companies have increased collaboration on open-source AI models and formed alliances between AI hardware and software firms. This initiative establishes a unified technology stack based on domestic standards, standardising APIs and model formats to enable Large Language Models (LLMs) to operate across diverse backends. Concurrently, China proposes a Shanghai-based Global AI Cooperation Organization to coordinate ethical standards and facilitate open-source AI exchange, positioning itself as an alternative to US leadership in AI development.
Why it matters
This development introduces a new dependency on a domestically controlled, standardised AI ecosystem, potentially limiting the flexibility of procurement and integration for organisations operating within or with ties to China. It increases due diligence requirements for evaluating the provenance and compliance of AI models and hardware, particularly for IT security and procurement teams, due to the shift towards non-US-centric standards and governance. This creates a policy mismatch for existing international AI governance frameworks.
