AI Competition Without Borders

A wave of increasingly capable AI models is lowering the cost of building products, but it is also intensifying competition across countries and companies. Analyze how cheaper AI models can reshape startup strategy, market concentration, and global power. When does low-cost AI democratize innovation, and when does it increase dependency on outside platforms or raise concerns about security, censorship, and bias? Compare the incentives facing frontier-model labs, open-source communities, and startups trying to ship products quickly. Then propose a strategy for a small company choosing between expensive premium models and cheaper alternatives.