← All news·2026-07-21·3 min read

US threatens sanctions against China for stealing their AI models

Treasury Secretary Scott Bessent said that the US would sanction Chinese AI models that try to steal IP from American firms. This is the first time in history where the US will be sanctioning AI models, not chips.

aichinausasanctionsregulation

US Treasury Secretary Scott Bessent has stated that if Chinese AI models are attempting to steal IP from American firms, they will be sanctioned. Open-weight Chinese AI models such as Kimi K3 are accused of using distillation (training on the output of other models) to mimic the actions of GPT and Claude.

The Trump administration is making sure that China doesn’t get its hands on any AI tech, starting with limiting access to hardware and now threatening to shut down their access to algorithms.

Source: techcrunch.com

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EAEvgenii Arsentev

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Evgenii Arsentev

PhD · Chief Executive Officer, digital health