It might be impressive on benchmarks, but there's just no way for them to break through the noise from the frontier models. At these prices they're just hemorrhaging money. I can't see a path forward for the smaller companies in this space.
Tim Dettmers had an interesting take on this [1]. Fundamentally, the philosophy is different.
>China’s philosophy is different. They believe model capabilities do not matter as much as application. What matters is how you use AI.
maybe being in China gives them advantage of electricity cost, which could be big chunk of bill..
I expect that the reason for their existence is political rather than financial (though I have no idea how that's structured.)
It's a big deal that open-source capability is less than a year behind frontier models.
And I'm very, very glad it is. A world in which LLM technology is exclusive and proprietary to three companies from the same country is not a good world.