---
title: "AI TRENDS | UBS: China's Leading Model Training Costs About One-Tenth of Overseas Leaders"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293748863.md"
description: "UBS analyst Xiong Wei stated that China's leading AI model training costs are approximately one-tenth of overseas leaders, with inference and API pricing at 10-20% of global averages. Despite gross margins of 20-40%, slightly below US peers, profitability remains healthy. This cost advantage stems from structural efficiencies in algorithm innovation, strategic priorities, and open-source ecosystems, rather than aggressive subsidies or price cuts."
datetime: "2026-07-24T11:16:16.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293748863.md)
  - [en](https://longbridge.com/en/news/293748863.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293748863.md)
generator: "portal-rs"
---

# AI TRENDS | UBS: China's Leading Model Training Costs About One-Tenth of Overseas Leaders

According to Jin10, UBS Securities China internet analyst Xiong Wei said at a media sharing session on July 24 that, as demand becomes more segmented, pricing power differs across model tiers. He said China's leading model training costs are about one-tenth of those of overseas leaders, while inference costs and API pricing are about 10% to 20% of the average pricing of overseas comparable models, with gross margins still at 20% to 40%, slightly below U.S. peers but still at a very healthy level. He added that the advantage does not come from aggressive subsidies or vendors sharply cutting prices, but from structural cost-efficiency advantages, including training algorithm and architecture innovation, differences in model strategy priorities, and open-source ecosystem coordination.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**