The company is preparing to investigate a surge in adoption by U.S. companies.
The United States is preparing to at least prevent American companies from using Chinese AI models for business purposes. CNBC “The use of Chinese models by U.S. companies raises serious concerns,” it quoted an anonymous State Department spokesperson as saying. The added anonymous individual Chinese AI is “designed to advance Beijing’s discourse, censor dissent, and reflect the ideology and values of the Chinese Communist Party.”
The report claims that US companies are choosing Chinese AI models due to their lower cost and comparable quality. The article quoted Coinbase CEO Brian Armstrong about the company’s use of two Chinese AIs, GLM 5.2 (made by Z.Ai) and Kimi 2.7 (made by Moonshot). Additional reporting from CNBC in June quoted the CEO of Lindy, a startup that turned to DeepSeek to curb rising costs.
Another factor may be the current instability between the US government and domestic AI advocates. A few days ago nikkei asia It reported a surge in U.S. companies including AirBnB and Uber racing to adopt Chinese AI models. The company said this spike correlates with Anthropic discontinuing the use of two models, the Mythos 5 and Claude Fable 5, due to government orders.
It is unclear whether the United States could directly impose a blanket ban on market selection of AI models other than by changing its own procurement rules. And the United States is unlikely to be keen on restricting the use of open source models, given the First Amendment issues that could arise. Needless to say, it will be difficult to require companies to change their operations in overseas territories. For example, Apple uses Alviaba’s generative AI platform in iPhones sold in China.
what teeth It’s clear there’s no love lost between the US and China when it comes to using each other’s AI models. Reuters According to reports, Chinese authorities are holding similar discussions with domestic companies to prevent domestically produced AI from being used overseas. Additionally, China’s Ministry of Industry and Information Technology announced that Anthropic’s Claude code contains a backdoor that poses a “serious threat.” We’ll probably hear more about this in the coming weeks, months, and years.
