Some of the artificial intelligence boom’s biggest beneficiaries can cash in whether open models proliferate or not. A wave of cheap and powerful Chinese open-weight AI models is sparking concern among investors in the AI boom, but for many in the tech universe, the threat is less dire than it appears.

The rapid advance of open-weight models, which publicly release a set of numerical values governing their behavior, worries closed-model developers. Those companies keep their models unchangeable, granting tighter control over responses. Leaders like Open AI and Anthropic are planning IPOs soon, and any doubt about their advantage could lower their appeal.

Google’s closed model, Gemini, has slipped behind cutting-edge performance in recent months, and cheaper open-weight rivals threaten to pull customers away. Alphabet’s stock fell 10% after the launch of China’s Moonshot AI Kimi K3, which matched or outperformed leading closed models at a fraction of the cost.

Other powerful and efficient models surfaced this summer in China, including those from tech giant Alibaba and startups Z.ai and Mini Max. While open models may reduce demand for traditional high-margin AI solutions, the overall market remains robust, with closed-model firms still holding strong competitive positions.