Chinese AI model developers

Chinese AI lab StepFun has unveiled Step 5 Preview, a sparse mixture-of-experts model with roughly 600 billion total parameters and about 27 billion active per token. The model supports a one million token context window and is designed for long-horizon agent work, with open weights. Observers are noting the specifications and what the release means for competition among Chinese AI labs and open-weight model development.

Chinese-developed artificial intelligence models, offered at low cost and with open access, now account for the majority of traffic from developers worldwide building on large language models. The trend is drawing concern in Washington, where officials worry that widespread reliance on Chinese AI infrastructure could give Beijing strategic and technological leverage over the global software ecosystem.

Investors and analysts are debating whether Alibaba's heavy spending on artificial intelligence can be sustained. The Chinese e-commerce giant has committed large sums to AI infrastructure and model development, prompting questions about returns and the impact on profitability. Market watchers are weighing the long-term payoff of its AI push against near-term cost pressures.