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AI isn't just coming from Silicon Valley anymore. A growing number of startups — and companies like Airbnb — are turning to Chinese open-source AI models instead of US-based APIs. Not because it's trendy. Because it's cheaper, more flexible, and often good enough. In this episode, Sophia Matveeva speaks with Alex Hern, AI correspondent at The Economist, about what's driving this shift. They break down how DeepSeek disrupted the market, why constraints fueled smarter engineering, and what founders can realistically try today if they want more AI options without more spend. Alex Hern is The Economist's AI Writer, focusing on the science and technology of artificial intelligence. Before joining the paper, he covered technology for 11 years at The Guardian, where he was the UK technology editor. In this episode, you will hear: - Why relying on US AI APIs may be quietly limiting your product and your margins
- How Chinese open-source models let founders experiment, customize, and ship faster without runaway costs
- The real reason DeepSeek shocked Silicon Valley — and what it reveals about building under constraints
- What you can realistically try today if you want AI leverage without an AI-sized budget
Free AI Mini-Workshop for Non-Technical Founders Learn how to go from idea to a tested product using AI — in under 30 minutes. Get free access here: techfornontechies.co/aiclass Follow and Review: We'd love for you to follow us if you haven't yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you. For the full transcript, go to https://www.techfornontechies.co/blog/290-why-airbnb-switched-from-openai-to-chinese-ai-and-what-it-means-for-your-budget |