China's AI Models Disrupting Business Norms

**SPEAKER_1** (0:00)
If you want to get access to this episode and my next 30 episodes all ad free, so there'll be no ads on them, go check out my podcast AI Chat. You can go search for that on Spotify or Apple. It's AI Chat. I'm gonna post all of these news episodes, and I'm also posting interviews, like I just interviewed the CEO of Cohere. They've raised over a billion dollars for their AI model, talking about what they're gonna be spending the money on and the direction of the AI industry, along with all of this new stuff. So if you wanna go check it out with no ads for free, it is AI Chat.

**SPEAKER_2** (0:28)
Welcome back to the podcast. Today, we are talking about these new Chinese models that have just been released that are apparently closing the gap with Anthropic and OpenAI. So today, we're gonna get into all the different details of, you know, is Claude really that proprietary? Can it be copied? Which model should I use? And what that means for the economy and everything going forward, there's huge implications for this. Before we get into that, I wanted to mention our AI Hustle School Community. If you have not checked that out yet, you really want to go check it out. It's a great place to learn how to actually take some of these tools and learn how to make money with them or grow your business. So this week, Jaden and I talked all about building directory websites, how that can be a huge SEO tool to grow your business or also a marketing tool for other businesses, how you could also make money doing, like renting your website out to contractors, basically selling them leads. There's so many different ways you can take a directory website, and now it's easier to build one than ever. So we break down that strategy, show two different applications. It's a really great episode. So you can join our school community free. We have a free tier which gives you access to weekly live streams, and then also five bonus episodes. But if you want to open the whole vault of over a hundred videos, we've put hours and hours into this, you can pay the premium tier which is $19 a month. So we'd love to have you be a part of the community AI hustle. So we'll leave a link below for you to check that out. But let's talk about some of these Chinese models here. Kimi K3 and Quen 3.8 are the specific models that have just recently come out. There's a couple of different claims that are really important here with some of these.
The first one is that Kimi K3 lists at $15 per million output tokens against roughly $30 for OpenAI's ChatGPT 5.6 sole and $50 for Anthropix Clawed 5 So it's roughly half the cost of OpenAI and then a third of the cost of Clawed. And everyone knows who uses Clawed, including me, gets frustrated with how fast the tokens get used up. Even in like the Clawed Max plan, if you're doing anything sort of complicated, it really uses those tokens quickly because it's expensive. So a tool that could be on the same level as Fable 5, but cost a third, that to me is really enticing. Same with Quen 3.8. That's the other model we're talking about today. So that one, it didn't give specifics to cost, but it's described as second only to Fable 5 So a really, really powerful model.
The other thing, important thing to note about Quen is that I believe this one is able to be run locally, or at least older versions of Quen have been able to be run locally, which means you don't have to send out data to a server. So that can solve at least some of the security questions. That is the one caveat with a lot of these foreign, LLMs is the security concerns people have, which I think is valid. The other thing is, yeah, so are you giving up security for cost, or is our, which is actually, is Anthropix Claude actually that secure?
We don't really know, and I don't really have that much trust in any of them, to be honest, because we know, we talked about in another podcast about how there was just a settlement with Claude, with Anthropix, I should say, training off of pirated books, to the tune of $1.5 billion was the settlement, which is the largest in US history. So there's a lot of questions security-wise, but also costs too. So there's a lot of different things to take into account here with these different models. But I think moving forward, it's going to be kind of a... There's going to be economic question here as well, because up to this point, all the valuations in the stock market have been that what we have in these tech companies is the greatest in the world, it's the most valuable and the most profitable. But if some of these models can come up and do it for half the cost, that's going to really, I think, put a big hit on some of these big tech companies we have here in the US. So if they can beat us in the arms race of technology, I think that could not only have big consequences for our national security, but also our economy. So because people in general, I would say, don't like America in other countries. And if they can use something that's cheaper and also not have to pay us money, they're probably going to do it. So I don't know. I think there's a lot of discussion here to be had. But I think if you are listening to this, the important takeaway is that just be aware of some of these other models, and it may suit your use case better, depending on what you're doing.