technology
U.S. Government Prepares to Investigate Companies' Use of Chinese AI Models
The U.S. is preparing to probe and potentially restrict American firms' adoption of Chinese-made AI models. Companies cite lower costs as a key factor in switching. Officials have raised concerns over data security and ideological alignment.
Jul 8, 7:11 AM·1m read1 source
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The U.S. government is preparing to investigate and restrict American companies' use of Chinese-made AI models, Engadget reported. An unnamed State Department spokesperson stated that the use of Chinese AI models by U.S.
Companies raises serious concerns. The spokesperson added that Chinese AI is designed to advance Beijing's narratives, censor dissent and reflect CCP ideology and values. U.S. companies are choosing Chinese AI models due to lower cost and comparable quality, according to the report.
Coinbase CEO Brian Armstrong stated that Coinbase uses GLM 5.2 made by Z.Ai and Kimi 2.7 made by Moonshot. The CEO of startup Lindy stated that the company switched to DeepSeek to reduce costs, a move quoted in a June CNBC report. Airbnb and Uber are among American companies adopting Chinese AI models, Nikkei Asia reported.
Anthropic suspended use of Mythos 5 and Claude Fable 5 models following a U.S. government request. Chinese authorities have held talks with domestic companies to prevent use of Chinese AI models overseas, Reuters reported.
China's Ministry of Industry and Information Technology announced that Anthropic's Claude Code contains a backdoor posing a serious threat. Apple uses Alibaba's generative AI platform for iPhones sold in China. The U.S.
Government has not imposed a sweeping ban on Chinese AI models beyond altering its own procurement rules.
