More than payroll — for over two dozen employees. More than rent. More than for anything else. So last month, Crivello announced that Lindy had migrated 100% of its traffic to the Chinese AI model DeepSeek-V4.
„It was just 10x cheaper,“ he said, adding that it had saved the company millions of dollars. „So it was a very, very simple business decision.“
Artificial intelligence has become one of the — it not the — fastest-growing costs for U.S. businesses. But for many companies, it’s a double-edged sword: necessary but expensive. To survive, a growing number of firms are switching from American models to cheaper Chinese AI.
In the race to create the best AI models, U.S. companies like Anthropic, OpenAI and Google lead the world. Experts say Chinese models are six to 12 months behind in terms of capabilities.
HeavyPanzerPlus1s on
It depends on what most ordinary companies are actually using AI for. If it’s just for routine tasks, then using a high-cost LLM is simply unreasonable. I feel that at least 90% of companies aren’t doing anything like rocket science.
Getafix69 on
Makes sense, save money customer gets the same experience anyway. Would be mad not to in fact.
Ninevehenian on
If only wealth weren’t so concentrated that nobody could afford the product of the 10 people who owns stuff. They might have customers.
CollegeMiddle6841 on
As usual, other countries out perform us because we are so fucking obsessed with $$$.
crimxxx on
At the end of the day it makes sense to use the cheapest option that meets your needs. If your use case was solved with older models without the better reasoning stuff new models are good at it probably makes sense to at least check if this is an option.
thecementmixer on
Trump is already trying to shut down Chinese models. So there’s some tug of war happening right now between startups and the big guys who probably want exclusivity since they aren’t able to compete.
PornstarVirgin on
Some? A majority of us companies us Chinese ai models on the back end.
PrimeTimeRK on
Thoughts on whether these Chinese models were built off of or leveraged already established LLMs?
r2k-in-the-vortex on
US companies are not obsessed with building the best models. They are obsessed with burning investors money as fast as possible before it runs out.
AI barely makes any money at all. Selling AI companies to investors though turns trillions. There is a business model behind the business model.
zivlynsbane on
Explains pretty well why we build things outside of the country where it’s much cheaper, quality might vary but pretty good idea to pay someone cheaper than to produce things in the country.
CaptainMorning on
Some startups??? A LOT of startups AND big companies. even freaking MS is considering moving to deepseek.
if you have a business, and the options is pay a lot, or pay less for the same, there is no contest.
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From the article
More than payroll — for over two dozen employees. More than rent. More than for anything else. So last month, Crivello announced that Lindy had migrated 100% of its traffic to the Chinese AI model DeepSeek-V4.
„It was just 10x cheaper,“ he said, adding that it had saved the company millions of dollars. „So it was a very, very simple business decision.“
Artificial intelligence has become one of the — it not the — fastest-growing costs for U.S. businesses. But for many companies, it’s a double-edged sword: necessary but expensive. To survive, a growing number of firms are switching from American models to cheaper Chinese AI.
In the race to create the best AI models, U.S. companies like Anthropic, OpenAI and Google lead the world. Experts say Chinese models are six to 12 months behind in terms of capabilities.
It depends on what most ordinary companies are actually using AI for. If it’s just for routine tasks, then using a high-cost LLM is simply unreasonable. I feel that at least 90% of companies aren’t doing anything like rocket science.
Makes sense, save money customer gets the same experience anyway. Would be mad not to in fact.
If only wealth weren’t so concentrated that nobody could afford the product of the 10 people who owns stuff. They might have customers.
As usual, other countries out perform us because we are so fucking obsessed with $$$.
At the end of the day it makes sense to use the cheapest option that meets your needs. If your use case was solved with older models without the better reasoning stuff new models are good at it probably makes sense to at least check if this is an option.
Trump is already trying to shut down Chinese models. So there’s some tug of war happening right now between startups and the big guys who probably want exclusivity since they aren’t able to compete.
Some? A majority of us companies us Chinese ai models on the back end.
Thoughts on whether these Chinese models were built off of or leveraged already established LLMs?
US companies are not obsessed with building the best models. They are obsessed with burning investors money as fast as possible before it runs out.
AI barely makes any money at all. Selling AI companies to investors though turns trillions. There is a business model behind the business model.
Explains pretty well why we build things outside of the country where it’s much cheaper, quality might vary but pretty good idea to pay someone cheaper than to produce things in the country.
Some startups??? A LOT of startups AND big companies. even freaking MS is considering moving to deepseek.
if you have a business, and the options is pay a lot, or pay less for the same, there is no contest.