Former Google chief Eric Schmidt has warned that western countries need to focus on building open-source AI models or risk losing out to China in the global race to develop the cutting-edge technology. From a report: The warning comes after Chinese startup DeepSeek shocked the world last month with the launch of R1, its powerful-reasoning open large language model, which was built in a more efficient way than its US rivals such as OpenAI.

Schmidt, who has become a significant tech investor and philanthropist, said the majority of the top US LLMs are closed -- meaning not freely accessible to all -- which includes Google's Gemini, Anthropic's Claude and OpenAI's GPT-4, with the exception being Meta's Llama. "If we don't do something about that, China will ultimately become the open-source leader and the rest of the world will become closed-source," Schmidt told the Financial Times. The billionaire said a failure to invest in open-source technologies would prevent scientific discovery from happening in western universities, which might not be able to afford costly closed models.

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