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Treasury Secretary Bessent warns US may sanction Chinese AI models

financeJul 21, 202677538

Treasury Secretary Scott Bessent warned Tuesday that the Trump administration is investigating whether Chinese open-source AI models were built on stolen U.S. intellectual property and said the United States could impose sanctions if it finds evidence of theft. Bessent told Fox Business that the administration supports open-source models but does not support IP theft, saying, "We are finding watermarks of our U.S. large language models on many of the Chinese models, and that that's unacceptable, Maria." The release of Kimi K3 by Chinese startup Moonshot AI last week, an open-weight model the company said rivals Anthropic and OpenAI, helped prompt the inquiry after an AI evaluator ranked Kimi highly for front-end coding. Bessent said the Treasury will be "looking at that in the coming days or weeks" and raised the possibility of requiring companies that use Chinese models to disclose that to customers. The statement expands the administration's toolkit for responding to perceived technology transfer, signaling potential financial penalties or designations if investigations find misappropriation of U.S. AI assets.

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