OpenAI and Anthropic's AI lead is perishable, IMD professor says
American artificial intelligence leaders OpenAI and Anthropic hold a roughly four-to-six-month technological advantage over Chinese competitors, but that margin may matter little to commercial clients, according to IMD Business School professor Howard Yu. Speaking to Benzinga, Yu argued that corporate customers mostly deploy AI for straightforward operational tasks that do not require…
Key points
- US frontier labs hold an estimated four-to-six-month technological lead over Chinese rivals, IMD professor Howard Yu says.
- Corporate AI tasks are often simple enough that cheaper open-source models deliver sufficient performance without frontier costs.
- Intel CEO Lip-Bu Tan stated Chinese models like DeepSeek, Kimi, and GLM offer lower token costs with rapid adoption.
Yu noted that enterprise decision-makers frequently weigh token expenses against the cost of hiring human workers, especially as studies from MIT and McKinsey indicate many corporate AI deployments fail to generate expected returns. In addition, open-source alternatives developed in China—such as models from DeepSeek, Kimi, and GLM—offer companies cheaper options that can run within private data centers to protect proprietary data.
Intel CEO Lip-Bu Tan expressed a similar view during the week, stating that Chinese models are already good enough for standard business needs and are seeing rapid enterprise adoption. Yu stated that demand for independence from American AI providers is noticeable in Europe and emerging across United States startups.
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OpenAI, Anthropic’s AI Lead Is ‘Very Perishable,’ IMD Professor Says: ‘You Don’t Need to Drive a Ferrari to Go to Walmart’
finance.yahoo.com · 18 October 2026
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