China’s AI ecosystem is moving fast. Kimi, DeepSeek, and Z.ai are building increasingly capable AI models. But how much is Silicon Valley actually paying attention?
Xing Meng, partner at 5Y Capital, joins us for an inside look at China’s AI industry and the rise of Chinese open-source and open-weight models. We discuss Kimi and Moonshot AI, DeepSeek, ByteDance, the young researchers behind China’s frontier AI labs, and how China’s AI ecosystem differs from the US.
We also dig into the distillation debate, video models, data providers, and why Chinese models may be having a bigger impact on AI developers than on researchers at OpenAI, Anthropic and other frontier labs.

Timeline:
00:00 Xing Meng
02:06 Silicon Valley trip recap
05:45 Kimi, Moonshot AI and China’s young AI researchers
14:32 DeepSeek and unusual Liang Wenfeng
18:05 Z.ai, MiniMax and what makes a great AI lab
22:14 ByteDance, Zhang Yiming’s bold decision, distillation debate
26:54 Are Chinese open-source models actually changing Silicon Valley?
30:56 Are frontier AI models becoming commoditized?
35:03 Why China is leading in AI video generation
46:52 Neo Labs, AI agents and the future of model companies
49:05 The next frontier of AI training data
58:04 How US and China approaches data differently
1:04:26 AI for science
1:10:26 Silicon Valley’s biggest misconception about China’s AI ecosystem

About Valley101:
Valley101 is an independent media that tells deeply reported stories about the people, companies, and technologies shaping the future. We cover AI, semiconductors, startups, and the global technology industry through documentaries, explainers, and conversations with the people building it.

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Contact: video@sv101.net

In April 2026, a group of U.S. AI researchers traveled to China to get a firsthand look at the country’s fast-moving AI ecosystem.

During the trip, they visited AI labs and companies across Beijing, Hangzhou, and Shanghai, meeting with teams from Alibaba, Moonshot AI, Zhipu AI, Tsinghua University, Meituan, Xiaomi, Qwen, Ant Group, and 01.AI.

Nathan Lambert, a prominent AI researcher known for his work on RLHF and open-source AI, joined the trip. A graduate of UC Berkeley, Nathan previously helped build Hugging Face’s RLHF research team. He later led post-training research at the Allen Institute for AI, better known as Ai2, where he worked on open models including OLMo and Tülu. He is also the author of Interconnects, one of the most widely read independent publications covering frontier AI research and policy.

So what did someone who has spent years at the front lines of America’s open-model movement see when he stepped inside China’s AI labs? How is the competition between the United States and China changing? And what does the next phase of the global AI race look like?

In this episode of Silicon Valley 101, we sit down with Nathan Lambert to talk about what he learned in China—and where he believes the AI world is heading next.

Timecode:
00:00 China Journey: Meeting the People Behind Large Models
12:05 Moonshot: “These Talents Are So Young”
16:41 Zhipu: “AGI Showrooms” and a Public-Company Mindset
20:03 Meituan and Xiaomi: Bringing AI into Products and Business
25:14 The “Technology Ownership Mindset” of Chinese Companies
26:59 Alibaba Qwen: Balancing Model Capability and Cloud Business
30:16 The Missing American-Style Middle Layer in China
32:34 01.AI: Not Every Company Needs to Build SOTA Models
35:40 The U.S.-China Model Gap: Is It Always 6 to 9 Months?
38:47 Open Models: America Has Lost the Race, and Nvidia Is the Only Hope
44:20 China AI’s Talent and Organizational Strengths and Weaknesses
56:35 Compute Is the Biggest Anxiety for Chinese Labs
01:05:42 China’s AI Chips
01:11:35 Data: China AI’s Overlooked Weakness
01:14:45 AI Applications: Can China Overtake?
01:16:21 The Next Stage of the Global AI Race

About Valley101:
Valley101 is an independent media that tells deeply reported stories about the people, companies, and technologies shaping the future. We cover AI, semiconductors, startups, and the global technology industry through documentaries, explainers, and conversations with the people building it.

Subscribe for more stories from Silicon Valley and beyond.

Contact: video@sv101.net