Schmidt noted that many leading U.S. large language models, including Google's Gemini and OpenAI's GPT-4, are closed-source, limiting accessibility and innovation.

He argued that the future of AI leadership will require a successful integration of both open-source and closed-source models, a sentiment echoed by OpenAI CEO Sam Altman.

He urged Europe to enhance its approach to AI regulation, suggesting that focusing on building applications on top of AI technology could yield economic benefits.

This warning comes on the heels of the launch of R1, a powerful open large language model by Chinese startup DeepSeek, which has already caused significant market turbulence.

Former Google CEO Eric Schmidt has issued a stark warning that Western nations must prioritize open-source artificial intelligence (AI) to avoid being outpaced by China.

He cautioned that if action is not taken, China could emerge as the leader in open-source AI, while the rest of the world remains trapped in closed-source models.

DeepSeek's R1 was developed at much lower costs than its U.S. counterparts, raising concerns about the investment strategies of American AI firms like Google and OpenAI.

Schmidt expressed concerns that a lack of investment in open-source technologies could hinder scientific discoveries in Western universities, which may struggle to afford expensive closed models.

At the AI Action Summit in Paris, Schmidt highlighted that the U.S. and U.K. did not sign a global AI safety declaration, diverging from the consensus of around 60 other countries.

In the investment realm, Termina AI Scans are being utilized by venture capitalists and founders to identify hidden risks and opportunities in over 12% of all known Series A+ deals.

Despite the competitive landscape, Schmidt advocated for collaboration with China on AI safety, emphasizing shared goals in enhancing safety in AI development.

Additionally, Zoho has pointed out the significance of Instagram in marketing, noting that at least a quarter of all Internet users have an account on the platform, making it vital for marketers in 2025.