Trump Admin Reportedly Weighing Chinese AI Crackdown After Beijing Closes Gap

The Trump administration appears more keen on banning advanced Chinese open-source artificial intelligence (AI) models after it was reported that China closed the gap with its newest model, according to Axios.

Moonshot AI, a Beijing-based AI company, recently released Kimi K3, which performs on par with America’s most advanced models. Kimi K3 appears to have reignited the Trump administration’s interest in banning Chinese open-source models. The administration did not ban these foreign models previously out of a concern over stifling innovation.

“The Trump Administration is committed to promoting America’s open-source ecosystem and strengthening its security,” a White House official told the Daily Caller News Foundation in a written statement.

The Commerce Department thought about adding many Chinese AI labs to its “Entity List” in which would have closed access to the models without a license, and the Department of Commerce wrote a draft rule that would use its authority to secure domestic supply chains to attack Chinese open-source models, Axios reported, citing an anonymous source, without stating why the source familiar with the administration’s thinking.

The Department of Commerce did not respond to a DCNF request for comment.

The Trump administration did not follow through with drafting guidance on Chinese lab threats and implementing an executive order that would have companies accept liability for using Chinese AI, according to Axios.

Top AI companies or allies close to the tech companies have approached the Trump administration periodically with a proposal to ban open-source models, Axios reported.

American companies use Chinese open-source models more than ever as Chinese models now work as effectively as American models. Kimi K3 also costs 40% less than flagship American models.

Now that White House adviser Sriram Krishnan left the administration, administration officials that want to ban Chinese open-source models have reportedly gained more influence.

The administration may not need to implement a strict ban on Chinese open-source models to limit the reach of foreign open-source models.

“What’s actually happening is slower and more durable,” a source that understands the government discussions told Axios. The source said that the administration could use procurement rules, threats to add models to the Entity List, and public pressure to discourage American companies from using Chinese AI. The administration said its campaign would point out cybersecurity issues that come with using Chinese AI.

Anthropic has accused three Chinese AI companies, DeepSeek, Moonshot, and Minimax of “illicitly” using its AI models to improve their own using a process called “distillation.” The Chinese AI companies did not respond to a request for comment from the DCNF, although the Chinese Embassy in Washington, D.C., in July said that the Trump administration’s accusation that Chinese companies are using distillation are “pure slander.”

Chinese authorities in July have held meetings with its top tech companies to potentially bar foreign access to the country’s most advanced models, according to Reuters.

One former Trump administration official said a ban on open-source AI would benefit the top American AI companies.

 “We are at a critical inflection point in AI policy. The leading closed labs, already a duopoly in terms of AI model revenue, want the government to eliminate their open-source competition,” David Sacks, a former Trump White House AI adviser, on Sunday wrote.

“They have laid their cards on the table. It is time for the rest of Silicon Valley — the vast majority that still values open competition — to do the same,” Sacks added.

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