Silicon Valley Embraces Chinese AI Models as US Regulatory Battle Intensifies and Chatbots Drive Trillion-Dollar Shopping Revolution

Jan 13, 2026
MIT Technology Review
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Summary

Silicon Valley companies increasingly adopt Chinese open-source AI models like DeepSeek R1 for cost advantages while Trump battles Democratic states over AI regulation, as chatbots revolutionize shopping with potential to generate $3-5 trillion in annual commerce by 2030.

Key Points

  • More Silicon Valley products build on Chinese open-source LLMs like DeepSeek R1 and Qwen as these models offer competitive performance at lower costs compared to closed American models
  • The US faces ongoing regulatory battles as Trump's executive order aims to limit state AI laws while Democratic states like California fight back in court over AI governance
  • AI chatbots transform online shopping with companies like Google, OpenAI, Walmart and Target enabling direct purchases through chat interfaces, potentially driving $3-5 trillion in annual commerce by 2030

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