I don't see how open-source AI models in the U.S. can successfully compete with those from China.

Chinese startups benefit heavily from local government subsidies, state-backed banks offering ultra-low-interest loans, and long-term capital (without collateral)—a playbook China has successfully used across other tech sectors.

In contrast, neither the U.S. federal nor state governments would ever provide that level of direct state capitalism, nor would American commercial banks issue loans under those conditions. Consequently, U.S. model developers are entirely dependent on venture capital and private investors who demand rapid, profitable returns.

U.S. entrepreneurs are making lots of strategic mistakes by (1) focusing on closed-source models (2) tech commentators are massively exaggerating AI’s impacts and ability, therefore pushing an overtly pessimistic narrative about how it will ruin lives. This relentless doom-mongering does nothing but fuel public anxiety, deepening people's distrust and dislike of the technology before they even understand its actual utility.

Looked at China entrepreneurs' interview, they are way more technically focus.

but I understand why that U.S. entrepreneurs must spend more time to bullshit. Because of this financial reality, they simply cannot sustain the capital burn against state-subsidized competition.

They have to shout loudly enough to get attention so to get money to fund their researches.

They have to do closed-model to convince the investors they can generate profit.

This creates a vicious cycle: AI companies are forced to exaggerate the technology's capabilities just to convince investors that this is a once-in-a-lifetime breakthrough worth billions. However, the exact pitch used to excite Wall Street—a promise of total, unprecedented disruption—is precisely what terrifies the public. What investors see as an unparalleled financial opportunity, everyday people see as a direct, once-in-a-lifetime threat to their livelihoods.

This backlash creates the ultimate paradox: as public resentment grows, voters actively oppose any government intervention or state-sponsored policies aimed at supporting the domestic AI sector.