Eric Schmidt Warns of China's Advantage in Open Source AI

Former Google CEO Eric Schmidt has expressed serious concerns regarding the future of open-source artificial intelligence (AI) in Western countries. He believes that if the West does not prioritize open-source AI initiatives, China is poised to take the lead in this critical technology.

The Shift Towards Open Source

During a discussion at the AI Action Summit in Paris, held by the Financial Times, Schmidt highlighted a key issue: most of the leading large language models (LLMs) in the United States, including Alphabet Inc.'s (GOOG / GOOGL) Google Gemini, OpenAI's GPT-4, and Anthropic's Claude, are closed-source. Schmidt emphasized, "If we don't do something about that, China will ultimately become the open-source leader and the rest of the world will become closed-source."

Impact on Research and Development

Schmidt further warned that this trend towards closed-source models could hinder Western universities and researchers, who may not afford proprietary AI models. This situation could limit scientific exploration and technological advancement. Although Meta Platforms, Inc.'s (META) Llama serves as an exception, Schmidt believes that a broader commitment to open-source development is necessary to maintain the West's technological edge.

Chinese Developments in Open Source AI

Schmidt's arguments resonate particularly well against the backdrop of recent advancements made by Chinese startup DeepSeek, which recently launched R1, a capable open large language model. This launch stirred activity in tech markets and caused fluctuations in AI-related stocks. For instance, Nvidia Corporation faced significant market turbulence, witnessing a 17% drop in its stock price following this development.

The Global AI Safety Declaration

Additionally, it is noteworthy that at the AI Action Summit, the U.S. and the U.K. refrained from signing a global AI safety declaration, setting themselves apart from around 60 other nations, including China, India, and Germany.

Changes in Perspectives on Open Source

In a shift in perspective, OpenAI CEO Sam Altman recently acknowledged the need for an alternative open-source strategy. He remarked, "I personally think we have been on the wrong side of history here and need to figure out a different open-source strategy." However, Schmidt responded by suggesting that a balanced approach, incorporating both open and closed-source systems, might be more effective.

AI, China, OpenSource, Technology, Leadership