Chinese open-source AI is starting to win over U.S. businesses
New spending data suggests companies are increasingly turning to cheaper, customizable open models—including fast-improving systems from China.
In the world of AI, Chinese open-source models are gaining traction among U.S. businesses. According to data from Ramp's AI Index, the share of enterprises paying for model serving platforms increased to 6.1% in July from 4.5% in January 2026. This shift indicates a growing interest in open-weight models, which are more affordable and provide greater control over data usage.
Chinese labs like Z.AI and Moonshot have been developing impressive models like Ox Alpha and Kimi K3, respectively. These models have outperformed some U.S. counterparts in coding and agentic performance, while also offering competitive pricing. Companies such as Thomson Reuters and Harvey are already using these open-source models for specialized tasks, citing cost-effectiveness and performance advantages.
Although American AI giants like Anthropic and OpenAI still hold a significant market share, the growing adoption of open-source models suggests a shift in enterprise spending priorities.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
