AI China's open-weights AI strategy is winning: its companies are taking the lead. America's closed-first, locked-down strategy is doomed to failure - and it could take the US economy down with it. Link: China delivers a one-two punch to America’s AI dominance, by Robert Hart in The Verge AI models, as a product in themselves, have very little moat beyond what amounts to brand loyalty and superficial switching costs. Instead, the moat is in the enterprise services that sit around them: the deals and contracts, connectivity with enterprise systems, and quality of life features in an enterprise context. If we consider the models themselves, it’s easy to switch between them: someone could be using ChatGPT today and Claude tomorrow, with very little impact on their workflows. This is particularly true in the engineering world, where models are accessed via API: you can swap out the API and use the same prompt.…