The rise of Chinese LLMs could foster healthy competition in the AI market, making it harder for Big Tech to dominate, while giving businesses access to AI tools at a fraction of the cost, according to Brian Krawez, president of Scharf Investments.

Krawez told Reuters that companies like Microsoft could route business problems to the right models while managing security. The result, he said, could be a "Goldilocks economy" where competition, not dominance, defines the AI landscape.