Indian companies are increasingly turning to Chinese large language models (LLMs) from providers like DeepSeek, Alibaba, and Moonshot AI to lower their artificial intelligence expenses, KrASIA reported. This trend has been particularly noticeable since mid-2025, according to Puneet Kumar, CEO of Mirae Asset Venture Investments India.
These Chinese open-weight LLMs offer significant cost advantages, reportedly reducing AI spending by an order of magnitude. Several consumer technology startups in India have adopted these models as a strategic move to manage their AI budgets more efficiently.
For Japanese investors and tech firms, this shift highlights the growing regional influence of Chinese AI technology and the increasing cost pressures driving companies to explore cross-border AI solutions in the competitive Asian market.