Washington unveils major countermeasures; Silicon Valley AI responds with unprecedented price cuts

AI products from China and the US are vying for the global market. Although the US has stronger cutting-edge models, Chinese models are rapidly catching up, creating a “fear of Kimi” in the US media. Silicon Valley has even proactively lowered prices, and Washington has adjusted its policies in response, not daring to relax its vigilance. NTU President's Chair Professor of Finance and Associate DeanWill Cong said the commercial moat of large language models has an inherent weakness: it is a product that constantly "educates" competitors. Even if the model weights are not publicly disclosed, a large amount of output can become learning material for other models. This is precisely the "distillation" that American companies and officials have repeatedly accused Chinese companies of engaging in. He said that if model capabilities can be transferred through distillation, then the technological advantage supporting high valuations and high investment is not as solid as imagined.

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