Trump Administration Eyes Sanctions Over Chinese AI Model ‘Theft’

Treasury Secretary Scott Bessent said the administration is weighing sanctions against Chinese AI firms over allegations they distilled U.S. models, signaling a tougher approach ahead of bilateral AI talks.

The Trump administration will look into whether Chinese artificial intelligence (AI) models have been stolen or distilled from American models, U.S. Treasury Secretary Scott Bessent said on Tuesday.

“This administration supports open-source models, but what we do not support is IP theft,” Bessent said on Fox Business on July 21. “If we see, especially, that overseas models are stealing from our great companies, we have the ability to sanction them because of this theft.”

“We are finding watermarks of our U.S. large language models on many of the Chinese models, and that’s unacceptable,” he added. “So, we’re going to be looking at that in the coming days or weeks.”

Read the rest of the story at MeriTalk.

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