Low-Cost Chinese AI Finds Favor in U.S. Startups

US developers are increasingly using affordable Chinese AI models like DeepSeek to cut costs, with some reporting similar output quality to more expensive rivals; startups and mid-sized firms are saving millions and even large platforms are testing DeepSeek as a cheaper option. Yet Chinese model makers face political scrutiny and data-security concerns in the U.S., complicating monetization as users access via US clouds or open-source variants. The key test ahead is turning usage into revenue and earning enterprise trust, while incumbents consider price reductions to stay competitive.