AnalysisBusinessSeptember 4, 2026

China's AI race shifts from model quality to cost and monetization

UBS analysts at a Sept. 1 briefing say Chinese AI buyers are shifting from 'token-maxxing' to 'token optimization,' favoring open-source models that cost less than one-tenth as much to develop as overseas peers, with API pricing at 10-20% of international rivals. However, cheaper AI doesn't automatically boost revenue due to limited user time and attention.

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