Chinese Tech Giants Build Their Own AI Models as Competition Intensifies

China's major technology companies are prioritizing the development of proprietary artificial intelligence models over acquiring existing systems from competitors, intensifying a costly domestic race where widespread model distillation and aggressive cost-cutting are reshaping the global AI landscape. The strategy reflects a fundamental shift in how Chinese tech firms approach AI: rather than licensing or purchasing models, Baidu, Alibaba, ByteDance, and Tencent are each building competing foundation models designed to integrate directly with their cloud platforms and consumer applications.