China seems to be systematically working to commoditize LLMs and drive prices down as far as possible. It will be interesting to see the dynamic between that race-to-the-bottom pricing in China and US tech companies trying to extract maximum value to justify their capex-fueled growth models.

Mostly because the government is also involved in using AI to actually help public and make living better. The cheaper it is, the more people will use it, the government can use it too. Make everything easier and better.

China has introduced many related policies. For wxample, when OpenClaw was very populat, a district goverment in Shenzhen launched a support program of 2 million RMB for AI startups.

Furthermore, some Chinese telecom companies are now deploying data centers and issuing LLM model token plans.

This is something only China can accomplish. China's infrastructure is better than other countries, with vast power resources and cheap infrastructure costs, which are the reasons why Chinese model are cheaper than those in the US. In China, electricity costs approximately $0.2 per kWh, much cheaper than in the US.

However, this also raises many problems. Before AI becomes widespread, its price remains low, and the large-scale construction of data centers, coupled with a lack of immediate demand, could potentially lead to AI companies losing their entire investment.