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Australian start-ups are loving Chinese AI (just don’t ask them about it)

The Australian Financial Review

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Date Published
22 Sept 2026
Priority Score
3
Australian
Yes
Created
22 Sept 2026, 04:00 pm

Authors (1)

Description

As the US and China vie for AI supremacy, fast-growing Australian start-ups are using cheaper models from Chinese suppliers, saying they can work safely locally.

Summary

This report examines the adoption of Chinese open-weight frontier models, such as DeepSeek and Moonshot AI's Kimi, by Australian startups seeking cost-effective computing power. The trend highlights a significant shift in the global AI supply chain, as Australian firms balance the performance advantages of these models against geopolitical tensions and security concerns from the Australian Signals Directorate. This movement underscores challenges in global AI governance, specifically regarding the monitoring and safety alignment of powerful models developed outside the primary US-led ecosystem. The article's focus on the proliferation of high-capability open-weight models suggests new complexities for managing catastrophic risks and maintaining local cybersecurity standards.

Body

TechnologyAIPrint articleEmma RapaportTechnology reporterSep 22, 2026 – 6.01pmMore than 18 months since DeepSeek’s launch sent a ripple of worry through Silicon Valley’s biggest artificial intelligence developers, Chinese platforms are slowly but surely going mainstream among Australian start-ups looking for the same computing power without the big price tag.Most, however, don’t want to talk about it. Suspicion hangs heavy around some of the most popular models developed in China – known as open-weight – including Moonshot AI’s Kimi and High-Flyer’s DeepSeek.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreAIChina relationsAustralian Signals DirectorateOpenAIGoogleCybersecurityCyber SummitFetching latest articles