Does OpenAI struggle with intensifying talent wars and internal strife as Chinese AI advances?

The US' artificial intelligence (AI) company OpenAI recently put a spotlight on a Chinese AI startup that it believes is on the "front line" of "China's race to lead the world in AI," the CNBC reported. The Chinese company is portrayed to "represent a threat to OpenAI, which has received Washington's support to promote its foundational models as the world's go-to AI offering," according to the report. In a blog post published on June 25, the company wrote that the Zhipu AI has made "notable progress" in the AI race, as global competition ramps up.

As of press time, Zhipu AI has not responded to interview requests from the Global Times. Experts noted that while American AI giants lead in technology, Chinese companies hold considerable advantages in engineering implementation and market scale. Amid "pressure from Chinese companies," OpenAI, as an industry leader, is also facing fierce competition from within the US.

True motives questioned after 'naming' a Chinese company

According to the CNBC report, while fellow "AI tiger" DeepSeek has received the "lion's share of international attention" after it released its R1 model in January, OpenAI suggested that "Zhipu's expansion outside China and its ties to Beijing deserve more scrutiny." Zhipu AI reportedly has offices in the Middle East, the UK, Singapore, and Malaysia, and is also running joint "innovation centers" projects across Southeast Asia, including in Indonesia and Vietnam, read the report.

Founded in 2019, Zhipu is regarded by Chinese media as one of the "six AI tigers" among domestic large-scale AI model companies. According to its official website, the AI company is dedicated to developing a new generation of cognitive intelligent large models, focusing on Chinese innovation in large-scale AI models. In April, Zhipu registered a counseling agreement with the China Securities Regulatory Commission (CSRC), becoming the first of the "six AI tigers" to formally initiate the IPO process. It is reported that Zhipu aims to list on the A-share market as early as 2026.

A source familiar with the long-term development of the AI sector in China told the Global Times that American AI companies, including OpenAI, face intense talent competition and persistent funding gaps. Naming a Chinese company may be an attempt to draw attention from the US government, the source said.  

Global media have also questioned OpenAI's motives. India's Analytics India Magazine (AIM) reported that OpenAI's blog post seems less concerned with model performance and more alarmed about the architecture of influence. VC Bill Gurley questioned OpenAI's motives in spotlighting Zhipu AI, suggesting the move may have unintended consequences. "Very odd decision for OAI to openly promote this Chinese AI company 'Zhipu AI' in a blog post," he wrote on X. He suggested that the action taken simply boosts competitors' visibility among both funders and customers, effectively putting them on the map.

Bi Qi, chief scientist of China Telecom Corp Ltd and an academician at the Nokia Bell Labs in the US, told the Global Times that based on current reports, OpenAI did not highlight any technical superiority of Zhipu in AI but instead focused on Zhipu's success in fundraising and the number of its overseas offices. "From this perspective, they aim to amplify Zhipu's fundraising success, particularly emphasizing its success in securing funds from Chinese government channels, to lobby the US government to introduce policies favorable to OpenAI or even provide direct financial support," Bi said.  

He added that AI development is currently in a phase of heavy investment, and American AI companies hope to strengthen their funding chains through such publicity.

Since the beginning of this year, US tech giants have invested unprecedented sums in the AI sector. Microsoft has confirmed that it will lay off as many as 9,000 workers, in the technology giant's latest wave of job cuts this year. Microsoft has set out plans to invest heavily in AI, and is spending $80 billion in huge data centers to train AI models. Google announced a $75 billion investment plan for AI infrastructure earlier this year, while Meta plans to allocate $65 billion to support its AI goals, Reuters reported. 

However, the rapid rise of China's AI industry has instilled a sense of urgency among Silicon Valley giants. A July article in The Wall Street Journal titled "China is quickly eroding America's lead in the global AI race" noted that "Chinese artificial-intelligence companies are loosening the US' global stranglehold on AI, challenging American superiority and setting the stage for a global arms race in the technology."

Deep-seated concerns of US AI giants

Zhipu represented the nation's "hopes of building a self-reliant, globally competitive AI ecosystem that rivals America's and lessens dependence on American tech," OpenAI said.

Reuters reported that OpenAI has also built partnerships and attracted investment across the Middle East and Asia. Its "OpenAI for Countries" initiative helps interested governments develop "sovereign AI capability" in coordination with the US government.

OpenAI previously stated it plans to invest in infrastructure outside the US to run AI systems, as an overseas extension of its US AI data center project "Stargate." During a visit to the UAE in May, US President Donald Trump announced over $200 billion in commercial deals in the region, including one for building a Stargate UAE AI campus by OpenAI, Oracle, Nvidia, and Cisco Systems. It's expected to be launched in 2026, according to media reports.

"This is the US building walls," Analytics India Magazine analyzed, noting that "OpenAI's unease isn't just about competition. It's about losing narrative control." While the US has been aggressively promoting its AI stack globally through Project Stargate and government deals, trade missions, and strategic partnerships, China's quiet, infrastructure-first approach may prove more enduring, read the report.

Bi told the Global Times that, from the current trajectory, US giants like OpenAI and Meta, which initially advocated for open-source development, have shifted toward closed-source models. This reflects a lack of confidence in their technological leadership and monopoly status. "It is well-known in the internet industry that it's a winner-takes-all game. However, US companies currently face a dilemma in their business strategy," Bi explained. "Should they follow Google's Android model, using open-source to capture the global market, or Apple's model, leveraging technological superiority to create an exceptional user experience and lock in customers? This is a tough choice for US giants."

Bi believes that, as a general rule, market leaders prefer Apple's straightforward, aggressive business model, while challengers will strive to compete through an open-source approach. The global market shares of Android and Apple in smart devices demonstrate that open-source models pose a significant challenge to technologically leading companies. "This may be one reason why the early-stage overseas expansion of Chinese AI companies is striking a nerve with US giants."

Since the beginning of this year, both the US and China have seen rapid momentum in AI development. Bi noted that technologically, US giants lead China by a considerable margin. "This is why they opt for closed-source models. If they stick to closed-source while pursuers adopt open-source, it could create significant commercial impact for the leaders."

Bi believes that, despite the technological lead of US AI giants, Chinese companies have notable advantages in engineering implementation and market scale. Therefore, even if US giants maintain their technological edge, Chinese companies could capture a significant share of the global market through open-source strategies. "This is likely why US giants are deeply concerned. To mitigate this risk, a US AI giant must build enough confidence to stick with open-source and lead globally with its technological advantage.

A 'talent war' looms

The Wall Street Journal analyzed that while American AI companies give priority to the pursuit of major breakthroughs in a race to build AI, China's AI industry is focused far more on using AI to build practical applications — an emphasis that could help it win new users quickly.

"The No. 1 factor that will define whether the US or China wins this race is whose technology is most broadly adopted in the rest of the world," Microsoft President Brad Smith said at a recent US Senate hearing, according to the Wall Street Journal.

According to Singaporean media outlet Lianhe Zaobao, amid the global wave of digitization and intelligence, Chinese AI companies are beginning to shine on the international stage, leveraging their technological advantages and innovation capabilities. An industry report indicates that as of October 2024, China had 918 AI companies, with 203 of them pursuing overseas expansion, an internationalization rate exceeding 22 percent. The report noted that the vast majority of Chinese AI companies expanding abroad focus on application-layer products. 

The report reveals that in 2025, Chinese AI applications have seen rapid growth in both product types and numbers. Many Chinese companies view Southeast Asia as a key destination for expansion, where content-driven e-commerce platforms like TikTok, Shopee, Lazada, and Temu are experiencing significant growth. The Global News Network reported that as trade between China and ASEAN deepens, the rapid development of the AI industry has opened new application areas, further promoting regional economic cooperation and reshaping regional industrial patterns.

Meanwhile, the "involution-style" competition among US tech giants in the AI race is intensifying, with the talent war between OpenAI and Meta becoming a focal point. Fortune magazine reported on July 5 that in Silicon Valley's heated "AI hegemony race," jaw-dropping high salaries have been a key tool for giants to attract talent. However, OpenAI, as the industry leader, is grappling with how to attract and retain top talent. 

According to multiple sources, Meta offered OpenAI employees signing bonuses of $100 million , with some contracts reaching as much as $300 million over four years. The offers have been described as "staggering" and are among the highest compensation packages in Silicon Valley history, according to media reports.

According to WIRED, OpenAI executives have called Meta's hiring tactics "invasion." After losing at least eight top researchers, including four in just one week, OpenAI's research director Mark Chen reached out to the team with a promise that management is working around the clock to retain talent.

The relationship between OpenAI and its long-term partner and major investor, Microsoft, has also deteriorated recently. The Wall Street Journal reported that OpenAI wants to loosen Microsoft's grip on its AI products and computing resources, and secure the tech giant's blessing for its conversion into a for-profit company. Microsoft's approval of the conversion is key to OpenAI's ability to raise more money and go public. 

According to the Wall Street Journal, the negotiations have been so difficult that in June, OpenAI's executives discussed what they view as a nuclear option: Accusing Microsoft of anticompetitive behavior during their partnership, people familiar with the matter said. That effort could involve seeking federal regulatory review of the terms of the contract for potential violations of antitrust law, as well as a public campaign, sources said in the report.

Such a move could threaten the companies' six-year relationship, widely seen as one of the most successful partnerships in tech history. For years, Microsoft fueled OpenAI's rise in exchange for early access to its technology, but the two sides have since turned into competitors, making it more difficult to find common ground, according to the report. 

Chinese FM confirms restriction removal on former EU lawmaker Reinhard Buetikofer

Commenting on South China Morning Post's report that China has removed "restrictions" on Reinhard Buetikofer, the former EU lawmaker it sanctioned in 2021, Chinese Foreign Ministry spokesperson Lin Jian said on Wednesday that in recent years, exchanges between the legislative bodies of China and Europe have encountered some setbacks due to well-known reasons. In the current situation, both sides believe it is very important to strengthen dialogue and cooperation.

Lin said that after mutual consultation, China and the European Parliament have decided to simultaneously and comprehensively lift the restrictions on mutual exchanges.

According to South China Morning Post, the move is expected to galvanise a new round of engagement, with an official meeting of the National People's Congress and the China delegation of the European Parliament penciled in for Brussels in October. This would be the first official meeting between the sides since 2018.

 "We believe and look forward to the deepening of communication and understanding as China and Europe fully restore exchanges between their legislative bodies, which will inject new momentum into the sustained, healthy and stable development of China-Europe relations," Lin said.

Australian PM wraps up China trip with panda visit, calls for more research collaboration

Australian Prime Minister Anthony Albanese visited giant panda Fu Ni in Chengdu, Southwest China's Sichuan Province on Thursday, who returned to China from Australia last year. Albanese wrote on social media that the "cute" panda is part of a "long-standing friendship between Australia and China."

Albanese is paying an official visit to China from July 12 to 18, traveling to Shanghai and Beijing, with Chengdu marking the final leg of his trip. 

"Fu Ni has settled back into life in Chengdu after 15 years in Adelaide. She's not just cute - she's part of a long-standing friendship between Australia and China. That friendship continues, with pandas Yi Lan and Xing Qiu now calling South Australia home," Albanese posted on X on Thursday.

Last year, Wang Wang and Fu Ni, Australia's only giant pandas, left the country for China after 15 years. They were replaced at Adelaide Zoo by female giant panda Yi Lan and male Xing Qiu, both from Chengdu, the Xinhua News Agency reported.

"Seeing these cute ambassadors up close is a reminder of the bonds that bring our countries closer," Albanese posted.

Albanese confessed that he is a big follower of panda videos while visiting the Chengdu Research Base of Giant Panda Breeding, Australia's ABC news reported. 

The prime minister told the tour guide showing him around the center that he follows a bunch of accounts that post videos of the Chinese icons online.

"He does," fiancee Jodie Haydon interjected, per ABC.

The Australian Prime Minister also attended a Medical Technology lunch in Chengdu on Thursday promoting bilateral business deals in the space, including the manufacture of Australian-owned cochlear hearing devices in western China, Australian media outlet SBS news reported.

"Australia is a world leader in medical research. And Australian and Chinese scientists are working together towards new breakthroughs," Albanese posted on X.

During his stay in Beijing, Albanese visited the Great Wall on Wednesday and said in a post on X that "It was an honour visit the Great Wall of China today. It is in Australia's interest to have a stable relationship with China. Being here to advocate for our national interests directly is critical for maintaining and developing those ties." 

Albanese's visit to the Great Wall and the pandas follows a well-established precedent, Chen Hong, a professor and director of the Australian Studies Centre at East China Normal University, told the Global Times, citing as an example former Prime Minister Gough Whitlam, who played a pivotal role in establishing diplomatic ties between China and Australia and also visited the Great Wall. Similarly, former Australian prime minister Bob Hawke visited Chengdu Zoo, which offered to loan Australia two pandas for the 1988 bicentenary celebrations.

Notably, those two former prime ministers were members of the Labor Party. In this light, it can be said that Albanese's trip builds upon the groundwork laid by his predecessors, further advancing and strengthening the China-Australia relationship, said Chen. 

Albanese's China trip, which began Saturday and ends on Friday, is extraordinarily long compared with Australian state visits over the past decade and marks a normalization of bilateral relations that plumbed new depths under the previous Australian government's nine-year reign, AP reported on Thursday.

During his visit, China and Australia signed a memorandum of understanding (MoU) on the implementation and review of China-Australia Free Trade Agreement on Tuesday, according to the Chinese Ministry of Commerce (MOFCOM), Xinhua reported.

As 2025 marks the 10th anniversary of the agreement, the two countries will maintain close cooperation, continue high-quality implementation of the agreement, and jointly conduct a review to identify areas for further improvement or expansion, the MOFCOM said.

The visit centered on economic and trade cooperation, fostering the overall stability and development of bilateral relations, including in cultural and sports exchanges. 

Chen stated that he believes Albanese's visit to China was a success, highlighting the consistency and effectiveness of his China policy from his first term to his current second term.

Chinese premier announces construction of Yarlung Zangbo hydropower project

Chinese Premier Li Qiang announced Saturday the start of the construction of a hydropower project in the lower reaches of the Yarlung Zangbo River.

Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the announcement while attending a groundbreaking ceremony in Nyingchi City, southwest China's Xizang Autonomous Region.

Tianzhou-8 cargo craft re-enters atmosphere

China's Tianzhou-8 cargo craft has re-entered the atmosphere in a controlled manner at 6:42 a.m. (Beijing Time) Wednesday, according to the China Manned Space Agency (CMSA).

Most of the spacecraft's components burned up during the re-entry, and a small amount of its debris fell into the scheduled safe waters, said the CMSA.

Launched on Nov. 15, 2024 from the Wenchang Spacecraft Launch Site in the southern island province of Hainan, the Tianzhou-8 was loaded with supplies for astronauts, propellants, and devices for applications and experiments.

The Tianzhou-8 separated from the orbiting Tiangong space station combination on Tuesday and then entered its independent flight phase.

Xi calls for global dialogue, cooperation network among civilizations

Chinese President Xi Jinping said on Thursday that China is ready to work with other countries in building a global network for dialogue and cooperation among civilizations.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee, made the statement in a congratulatory letter to the Global Civilizations Dialogue Ministerial Meeting, which opened in Beijing.

He pledged that China will work with other countries to champion equality, mutual learning, dialogue and inclusiveness among civilizations, and implement the Global Civilization Initiative, in a bid to provide fresh impetus for advancing human civilizations and promoting world peace and development.

"The world is, in nature, a place of diverse civilizations," Xi said in the letter. "History has shown us that exchanges and mutual learning among civilizations are essential for civilizations to flourish and human progress to be made."

In a world where transformations and turbulences are interwoven and humanity stands at a new crossroads, there is an ever-pressing need for civilizations to transcend estrangement through exchanges, and to transcend clashes through mutual learning, Xi said.

He also expressed his hope that participating representatives would engage in in-depth exchanges to build consensus and contribute their wisdom and strength to the goal of promoting understanding and friendship among peoples, and achieving harmonious coexistence among civilizations.

Themed "Safeguarding Diversity of Human Civilizations for World Peace and Development," the two-day meeting is co-hosted by the Publicity Department of the CPC Central Committee and the International Department of the CPC Central Committee.

Rare earth exports have never been, should not be an issue between China and Europe: Chinese Foreign Minister

In response to a reporter’s question about European companies’ concerns regarding China’s export controls on rare earths, Chinese Foreign Minister Wang Yi stated on Thursday during a joint press conference with German Foreign Minister Johann Wadephul that rare earth exports have never been, and should not become, an issue between China and Europe. He emphasized that as long as export control regulations are followed and necessary procedures are fulfilled, the legitimate needs of European companies will be guaranteed.

Imposing necessary controls on dual-use items is an exercise of national sovereignty and an international obligation for all countries. China’s policy aligns with international norms and serves to safeguard global peace and stability. Chinese authorities have even established a “fast track” mechanism for European enterprises. Any attempt to stir up this issue between China and Europe is driven by ulterior motives, according to Wang.

Xi replies to US youth pickleball cultural exchange delegation over China visit

Chinese President Xi Jinping has recently replied to teachers and students of the U.S. youth pickleball cultural exchange delegation from Montgomery County, Maryland, who have visited China under the initiative of inviting 50,000 young Americans to China for exchange and study programs in a five-year span.

Xi congratulated the delegation on its successful visit to China, saying he was pleased to see that pickleball has become a new bond for youth exchanges between China and the United States.

The future of China-U.S. relations depends on the youth, said Xi, expressing the hope that the delegation members will become a new generation of ambassadors for friendship between the two countries and make greater contributions to enhancing the friendship between the two peoples.

Earlier, the teachers and students of the delegation sent a letter to Xi, expressing their gratitude for the "50,000 in Five Years" initiative he put forward.

They shared their experience of visiting China and engaging in pickleball exchange activities in April, saying that they forged unforgettable friendships with Chinese youths during the trip.

They expressed their hope to invite Chinese young people to visit the United States.

China stands firm in defending own rights, int'l fairness amid US tariff pressure, says Premier Li

Faced with US tariff pressure, China stands firm in defending its own rights and interests and upholding international fairness and justice, Chinese Premier Li Qiang said here on Monday.

Li made the remarks when meeting with Director-General of the World Trade Organization Ngozi Okonjo-Iweala on the sidelines of the 17th BRICS Summit.

China's 3D-printed micro turbojet engine completes maiden flight

The 3D-printed Minimalist Lightweight Micro Turbojet Engine, which was developed independently by the Aero Engine Corporation of China (AECC), successfully completed its first flight test in North China’s Inner Mongolia Autonomous Region on Tuesday, AECC announced on its official WeChat account on Wednesday.

According to the AECC, the engine is the first of its kind in China to complete a flight test, with a thrust level of 160 kilograms. The engine, which utilized multidisciplinary topological optimization and additive manufacturing technology, represents a revolutionary integration and innovation in aviation engine design and manufacturing processes, filling a domestic gap in the full-scale engineering application of this technology.

The flight test was conducted according to the planned scheme. It reached a maximum altitude of 4,000 meters above sea level, which fully verified the engine's reliability and stability under real flight conditions. The success of the test marks significant progress in China's application of deep integration of multidisciplinary topological optimization design and additive manufacturing in aviation power engineering.

The engine’s development team tackled key technologies such as multidisciplinary topological optimization design tailored for additive manufacturing and integrated design of components, significantly reducing the engine's structural weight and achieving remarkable improvements in key performance indicators. To ensure the success of the flight test on the first attempt, the engine had completed critical ground tests, including performance standards and engine life, before the test flight.

This successful maiden flight will lay a more solid technical foundation for the development of subsequent advanced aviation engines, said AECC.