In a compelling address at the AI Auction Summit in Paris, former Google CEO Eric Schmidt issued a stark warning to Western nations: embrace open-source artificial intelligence (AI) or risk being eclipsed by China’s rapid advancements. Schmidt’s caution comes in the wake of China’s DeepSeek unveiling its groundbreaking open large language model, R1, which has set new benchmarks in efficiency and performance.
Schmidt highlighted a critical disparity: while leading U.S. AI models like Google’s Gemini, Anthropic’s Claude, and OpenAI’s GPT-4 remain closed-source, China’s DeepSeek has taken a divergent path by open-sourcing its R1 model. This openness not only accelerates innovation but also democratizes access, enabling a broader spectrum of researchers and developers to contribute. Schmidt expressed concern that the West’s reluctance to adopt open-source models could stifle scientific progress, particularly in academic institutions that may lack the resources to engage with proprietary systems.
“If we don’t do something about that, China will ultimately become the open-source leader and the rest of the world will become closed-source,” Schmidt remarked, emphasizing the urgency for a paradigm shift in the West’s approach to AI development.
He advocated for a hybrid strategy that leverages the strengths of both open- and closed-source models, suggesting that such an approach could foster innovation while maintaining necessary safeguards. To this end, Schmidt announced a $10 million investment in a new AI Safety Science program, aiming to address the ethical and safety concerns inherent in AI development.
Schmidt also addressed the regulatory landscape, cautioning that excessive regulation, particularly in Europe, could impede progress. He urged European nations to harness AI’s potential to drive business efficiency and economic growth. “Europe’s got to get its act together. The application layer is profoundly powerful, and it will make your Europe more efficient,” he stated.
The unveiling of DeepSeek’s R1 model has intensified the global AI race, challenging U.S. dominance in the field. Developed at a fraction of the cost of its Western counterparts, R1 is capable of solving complex scientific problems, signaling a potential shift in the technological balance of power.
As the AI landscape evolves, Schmidt’s call to action underscores the need for Western nations to reassess their strategies, embracing openness and collaboration to maintain a competitive edge in this critical domain.