Comment by prngl

There are 2 economic arguments for why it would make sense for Chinese State to subsidize the open-sourcing of models beyond undermining Anthropic's and OpenAI's investments (and by proxy the American financial economy, ie capital class):

1. As induced demand for domestic semiconductor production, where the level and diversity (ie number of distinct corporate users) of demand for the hardware is tied to the availability of models you can run yourself, ie open-weight models. If you believe that semiconductors will continue to be an important sector for innovation, productivity growth, and security, then it would make sense to subsidize broadly now, for future gains later. This would be the same export-led manufacturing discipline that allowed China to successfully develop several other sectors over the last 50 years.

2. It is likely that the bulk of value production will happen above (and below, ie #1) the large models. We already know that 90% of the training cost (maybe even closer to 99%) is in the single pre-training, but that an enormous amount of the value is actually in the supervised, RL, constitutional fine-tuning, and harness building that happens afterward. So, if your interest was in maximizing the size of the pie, you may actively subsidize the pre-training so as to maximize the downstream usages. This induces a direct value transfer from the labs specializing in pre-training to all downstream builders and users. There's a similar logic to subsidizing or state-financing the construction of other infrastructure and basic research.