Source: NYT > Business (paywall)
Despite building competitive large language models that rival OpenAI's capabilities, Chinese AI companies like Baidu, Alibaba, and Tencent face a core constraint: their existing businesses—search, e-commerce, cloud services—already generate substantial revenue. Launching AI products that compete with these franchises risks cannibalizing that base, while consumer-facing AI monetization remains underdeveloped outside the US. Technical parity with OpenAI hasn't translated into comparable commercial advantage. Incumbents lack the startup mentality to rapidly experiment with new revenue streams. OpenAI, by contrast, has moved aggressively into licensing and API strategies, treating model distribution as its core business rather than a side product.