Businesses are using Chinese AI again?

2026-06-30 · Source: Ramp Economics Lab · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation, Data Science & Analytics · Depth: Intermediate, quick

Summary

Ramp's latest "Top SaaS Vendors" report, based on billions in business expenses across 50,000-plus businesses, reveals a surprising trend: American firms are increasingly adopting a cost-disciplined approach to AI spend, leading to a resurgence in the use of DeepSeek, a Chinese AI competitor to OpenAI and Anthropic. DeepSeek, which previously saw a modest hype cycle in January with 0.3% business adoption before dropping to 0.1%, is now experiencing renewed direct payments from businesses. This shift highlights competitive and security concerns for firms but also signals pressure on American model companies to offer cheaper alternatives or smart routing solutions. Additionally, the data indicates a broader move towards open-source models and inference platforms like Fireworks AI, fal AI, and DeepInfra, diverging from dominant players. The report also notes that Claude has not displaced design software like Figma and Paper.

Key takeaway

For AI/ML Directors managing spiraling AI spend, your strategy should now account for the competitive pressure from cheaper, non-traditional models like DeepSeek. You should evaluate open-source alternatives and model serving platforms such as Fireworks AI to optimize costs. Be mindful of competitive and security concerns with direct foreign AI integration, but recognize the market's shift towards cost-effective solutions.

Key insights

American firms are unexpectedly returning to Chinese AI competitor DeepSeek and open-source models, driven by cost discipline in AI spend.

Principles

• Cost discipline influences AI model adoption.
• Cheaper models create competitive pressure.
• Direct foreign AI usage raises security concerns.

In practice

• Explore open-source models for cost savings.
• Evaluate cheaper models from major providers.
• Utilize model serving platforms like Fireworks AI.

Topics

• AI Spend Management
• DeepSeek
• Open-Source AI
• Model Serving Platforms
• AI Cost Optimization
• Enterprise AI Adoption

Best for: CTO, AI Architect, MLOps Engineer, Director of AI/ML, Consultant, VP of Engineering/Data

Related on AIssential

• Deepseek is a Problem — The US open-source AI model is failing due to lack of monetization, risking Chinese dominance and geopolitical influence.
• When cheap AI becomes a secret weapon — Chinese AI models' cost-efficiency and near-parity in capability threaten proprietary developers' business models globally.
• AI startup Lindy ditched Claude entirely for Deepseek, saving millions as cost pressure mounts on Anthropic — AI startups are shifting to cheaper models like Deepseek to counter unsustainable costs from providers like Anthropic.
• The Silent AI Collapse. Why China Is Winning? — The AI budget bubble is bursting, forcing a shift towards cost-efficient, self-hosted, and open-weight AI solutions.
• A lot has changed in 3 months..... — The increasing cost of commercial AI services is accelerating the adoption of efficient, local, and open-source models.
• ChinAI #358: Around the Horn (25th episode) — China's AI ecosystem is dynamic, marked by rapid startup valuations, evolving business models, and significant talent and regulatory challenges.

See Counsel's argued verdicts on the open AI decisions leaders are weighing →

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by Ramp Economics Lab.