Monetizing China's Low-Cost AI Innovations

0:28John Daly here. There's nothing like the American Express Platinum card. Find out your welcome offer after you apply, which could be as high as 175 ,000 points. Learn more and find out your offer at americanexpress.com slash explore dash platinum. Terms apply. Welcome back to the podcast. Today we are talking about these new Chinese models that have just been released that are apparently closing the gap with Anthropik and OpenAI. So today we're going to get into all the different details of, you know, is Claude really that proprietary? Can it be copied? Which model should I use? And what that means for the economy and everything going forward.

1:09There's huge implications for this. Before we get into that, I wanted to mention our AI Hustle school community. If you have not checked that out yet, you really want to go check it out. It's a great place to learn how to actually take some of these tools and learn how to make money with them or grow your business. So this week, Jaden and I talked all about building directory websites, how that can be a huge SEO tool to grow your business or also a marketing tool for other businesses, how you could also make money doing like renting your website out to contractors, basically selling them leads.

1:46There's so many different ways you can take a directory website and now it's easier to build one than ever. So we kind of break down that strategy, show two different applications. It's a really great episode. So you can join our school community free. We have a free tier, which gives you access to weekly live streams and then also five bonus episodes. But if you want to open the whole vault of over 100 videos, we've put hours and hours into this. You can pay the premium tier, which is$19 a month. So we'd love to have you be a part of the community AI hustle. So we'll leave a link below for you to check that out.

2:21But let's talk about some of these Chinese models here. Kimi K3 and Quen 3.8 are the specific models that have just recently come out. There's a couple of different claims that are really important here with some of these. The first one is that Kimi K3 lists at$15 per million output tokens against roughly$30 for OpenAI's chat GPT. 5.6 soul and$50 for Anthropics Claude 5. So it's roughly half the cost of OpenAI and then a third of the cost of Claude. And everyone knows who uses Claude, including me, gets frustrated with how fast the tokens get used up. Even in like the Claude Max plan, if you're doing anything sort of complicated, it really uses those tokens quickly because it's expensive.

3:18So So a tool that could be on the same level as Fable 5 but cost a third, that to me is really enticing. Same with Quinn 3.8. That's the other model we're talking about today. So that one, it didn't give specifics to cost, but it's described as second only to Fable 5. So a really, really powerful model. The other important thing to note about Quinn is that I believe this one is able to be run locally, or at least older versions of Quinn have been able to be run locally, which means you don't have to send out data to a server. So that can solve at least some of the security questions. That is the one caveat with a lot of these foreign LLMs is the security concerns people have, which I think is valid.

4:12Um, the other thing is, you know, yeah. So are you giving up security, uh, for cost or is our, which is actually, is, is Anthropix, you know, Claude actually that secure? We don't really know. And I don't really have that much trust in, in any of them to be honest, because we know, um, we talked about in another podcast about how, uh, there was just a settlement with, uh, Claude, with anthropic, I should say, training off of pirated books to the tune of$1.5 billion was the settlement, which is the largest in US history. So there's a lot of questions security wise, but also costs too. So there's a lot of different things to take into account here with these different models.

5:02But I think moving forward, there's going to be economic question here as well, because up to this point, all the valuations in the stock market have been that what we have in these tech companies is the greatest in the world. It's the most valuable and the most profitable. But if some of these models can come up and do it for half the cost, that's going to really, I think, put a big hit on some of these big tech companies we have here in the U S so, um, if they can beat up, beat us in the arms race of technology, I think that could not only have big, uh, consequences for our national security, but also our economy.

5:47So, um, because people in general, I would say, uh, don't like America and other countries. And if they can use something that's cheaper, um, and also not have to pay us money, they, they're probably going to do it. So I don't know. I think there's, there's a lot of discussion here to be had. But I think if you are listening to this, that the important takeaway is that just be aware of some of these other models and, and if it may suit your use case better, you know, depending on, on what you're doing. If, if you don't want to pay for tokens and you're doing something like voice emulation. I know Quen has been really has a lot of notoriety for its voice capability.

6:37So as opposed to using something like 11 Labs that uses a lot of credits and costs a lot of money, you could have a cheaper version that's just as good or a free version if you run it locally. So again, just be aware of these different models and also moving forward with some of the economic implications. Just be paying attention. Jaden and I are always paying attention to these news stories and how it affects us and our daily work. Recently, Jaden has switched back to ChatGBT, which I think was big news to me because we've both been heavy on Claude, but he likes the speed more, the organization, and it just seems to be cheaper for him to use right now because he's doing a lot of development with different apps and things.

7:22So if that's you, again, just be aware of these changes that are all rolling out and which model suits your use case best. So anyways, thanks for listening, guys. If you would, again, check out our AI Hustle School community, we'd love to have you be a member. It's a thriving community of over 500 members, all people like-minded wanting to do the same thing with their businesses. So thanks for listening and we'll see you next time.

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