West urged to open mind, prioritize open-source AI to compete with China

The development of artificial intelligence has created a competitive landscape between Western nations and China, with particular focus on open-source versus closed-source AI models. Former Google CEO Eric Schmidt has emerged as a vocal advocate for increased Western investment in open-source AI development, pointing to recent advances by Chinese companies like DeepSeek.

Key dynamics in AI development: The artificial intelligence landscape is currently dominated by closed-source models from major U.S. companies, with Meta‘s Llama being a notable exception among Western tech giants.

• DeepSeek, a Chinese startup, recently launched R1, an efficient open-source large language model that has demonstrated impressive capabilities
• Major Western AI models like Google’s Gemini, Anthropic‘s Claude, and OpenAI’s GPT-4 remain closed-source
• OpenAI’s Sam Altman has expressed regret about the company’s closed-source approach, suggesting a potential strategy shift

Strategic implications: Schmidt argues that Western countries risk ceding technological leadership to China without greater investment in open-source AI development.

• The lack of accessible AI models could hamper scientific research at Western universities that cannot afford costly closed-source alternatives
• Chinese companies are making significant strides in open-source AI development, potentially positioning China as the global leader in this space
• The future of AI dominance may require a balanced approach combining both open and closed-source models

Economic opportunities: Despite U.S. leadership in initial AI model development, Schmidt sees potential for other regions to capitalize on AI applications.

• Europe could gain economic advantages by focusing on building business applications utilizing existing AI technologies
• Major tech companies continue investing billions in closed-source models, betting on better returns from proprietary technology
• The “application layer” presents significant opportunities for improving efficiency and creating value

Safety initiatives: Schmidt is actively supporting AI safety research through personal investment and advocacy for international collaboration.

• A new $10 million AI Safety Science program through Schmidt Sciences will fund 27 research projects
• Notable participants include Turing Prize winner Yoshua Bengio and OpenAI board member Zico Kolter
• Schmidt advocates for U.S.-China collaboration on AI safety, comparing it to military information sharing practices

Looking ahead: The path forward: The evolving AI landscape suggests a need for balanced development between open and closed-source models, while maintaining focus on safety and international cooperation. Success may depend on finding the right mix of proprietary innovation and accessible technology, rather than pursuing an exclusively closed or open-source approach.