The administration of Donald Trump is already holding closed consultations on how to respond to the rapid expansion of China's open artificial intelligence ecosystem. The situation is heating up: cheap and efficient models from China are beginning to displace American giants from the market, causing serious concern in US tech circles.
According to available data, nine insiders familiar with the negotiations have confirmed that Washington is considering possible measures—up to a new presidential executive order. However, current US policy, in their assessment, is poorly adapted to the realities of open AI, where Chinese developments are already almost on par with leaders in performance but cost significantly less.
Why this worries the US
This is not just about competition, but about a potential shift in entire market shares. Chinese open-source models are rapidly gaining popularity. If the trend continues, more and more developers and companies will switch to budget-friendly Chinese alternatives. This will create enormous pricing pressure on the profitability of American AI giants such as OpenAI, Google, and Anthropic.
According to analysts, it is this pricing imbalance that underlies Washington's concern. In the coming years, the topic of cheap Chinese AI will become one of the key issues in the industry.
Numbers don't lie: market share is shifting
Data from Apollo clearly demonstrates the acceleration of the trend. Among the 50 most used AI models in the world, China's share has noticeably increased over the past year and a half. In January 2025, the majority of models came from the US, while China held a modest position. However, by May 2026, the picture had dramatically shifted in favor of Chinese developments.
The number of American models in the top 50 decreased from approximately 33 to 28, while China's share steadily grew. Models from France and other countries have virtually disappeared from the list. This steady redistribution of the market is precisely what underlies the concern of the American industry and the active discussions in Washington.
My analysis: The AI market is entering a phase of intense price war. Chinese open-source models are not just cheap clones, but full-fledged competitors capable of democratizing access to advanced technologies. If the US does not adapt its strategy, it risks losing technological leadership not due to innovation, but due to price.