Jensen Huang scandal trail leads to Alibaba, the king of free Chinese AI: Chart of the Day

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The cheapest way for an American company to run AI is a free model made in China. The scandal that just cost Nvidia its CEO could shut off the chips those models depend on. Companies are making the switch fast. Duolingo (DUOL) co-founder and CEO Luis von Ahn said at Yahoo Finance Invest on Thursday that each AI practice call in his app used to cost about 30 cents. Now it's "less than a cent," he said, "by moving most of this to open weight models," the kind of AI anyone can download and run for free. Decagon co-founder and CEO Jesse Zhang said new customers at his AI startup run "almost entirely" on them. The most downloaded of those free models come from China, and the biggest maker by far is Alibaba (BABA).