Alibaba now joins in the fray, battling Deep Seek and OpenAI in a brutal Game of Thrones

Buzz saw of Chinese competition are coming to artificial intelligence!

Four months ago, I watched a video of Louis-Vincent Gave of Gavekal (a highly contrarian investment research service based in Hong Kong) explaining how China dominates the world export business.

China subjects their own enterprises to a ruthless Game of Thrones within their own country. Enterprises will battle other enterprises in brutal hunger games until the strongest survives. The rest will die and go bankrupt. The survivor is the provably fittest, and will then go out to battle the rest of the world.

To underline this point, Louis Gave asked this provocative question: when was the last time you saw a major enterprise in the US and Europe go bankrupt? Louis was able to name several in China right off the top of his head.

This is how Chinese enterprises dominate the global electric vehicle industry, putting Tesla under immense pressure.

AI Game of Thrones begin…

On the day of Trump’s second inauguration, Deep Seek released its AI model and technical white paper to the public domain. It took the financial markets one week to digest the significance of this event, culminating in a $1 trillion market rout a couple of days ago.

As if this is not enough, Alibaba announced today an AI model that surpasses Deep Seek. Remember, today is the second day of the Lunar New Year. Nobody is supposed to be working in China. It is not the time to release corporate big news. But they did it.

These two events signal the start of Chinese entry into the AI Game of Thrones. Like it or not, OpenAI and other US AI companies now find themselves in the same position as Tesla. It is now forced to join the Game of Thrones, Chinese style.

Buzz saw of Chinese competition

For end-users, the buzz saw of Chinese competition is welcome news.

Prices of AI are coming down, just like prices of electric vehicles and solar panels went down due to brutal competition.

‘Prophetic’ comment?

3 weeks ago, I posted this graphic on LinkedIn, commenting that the “AI financial bubble is going to burst”:

Then a couple of days ago, we had a $1 trillion stock market rout, thanks to Deep Seek. Today, on the second day of the Lunar New Year, Alibaba joined in the fray.

The buzz saw of Chinese competition will mean that OpenAI will be forced to lose even more money. Will it even survive?

What will happen to the Big Money poured into AI? What will happen to companies like Microsoft?

More market rout to come

If you have investments in the financial markets (especially stocks in the AI and Big Tech), put on your seat belts! This is going to be a rough ride!