US firms mix cheaper Chinese AI models to cut costs
The Wall Street Journal reported that US companies are shifting from what it called "tokenmaxxing" to "thrift-maxxing," blending cheaper Chinese models with those from OpenAI and Anthropic to lower costs. The report said the trend is changing how businesses buy AI and could pressure the leading labs' valuations ahead of potential public offerings.
Why it matters
Cost-driven model mixing could erode pricing power at frontier labs even as their capabilities lead the field.
Sources
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Part of the July 27, 2026 brief.