Chinese AI models threaten US industry by being up to 90% cheaper — and they're driving Google, OpenAI, and Anthropic out of the open market

Juniper Research reports that Chinese AI models cost up to 90% less to operate than US models from OpenAI, Google, and Anthropic, shifting developer preference towards cheaper Chinese alternatives. This has led to a split market: price-driven customers favor Chinese models, while quality-driven customers still prefer US models. The rise of open-weight models also enables local deployment, potentially reducing cloud providers' revenue.