Former Google Chief Executive Eric Schmidt sounded the alarm on a looming global AI imbalance, warning that an inexpensive, open-source Chinese AI model might become the standard for most countries.

Schmidt was speaking on the "Moonshots" podcast and added: whereas major AI models in the U.S. are closed-source and expensive, in China, they're open-source and free.

Why Open-Source AI Appeals Globally

Free to access, modify, and redistribute, open-source AI is extremely attractive to governments and organizations with shoestring budgets. According to Schmidt, the majority of nations and governments will end up " standardizing on Chinese models not because they're better, but because they're free."

Proponents argue that open-source models accelerate innovation and democratize technolo

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