The United States government is gearing up to investigate and potentially restrict the adoption of Chinese-developed artificial intelligence models by American companies. According to a report from CNBC, an unnamed State Department spokesperson expressed serious concerns, stating that the use of Chinese models raises national security and ethical issues. US companies are increasingly turning to Chinese AI solutions due to lower costs and comparable quality, but this trend has sparked a heated debate in Washington.
Coinbase and Startups Like Lindy Lead the Shift Toward Chinese Models
A notable example is Coinbase, whose CEO Brian Armstrong publicly disclosed the use of two Chinese AI models: GLM 5.2 by Z.Ai and Kimi 2.7 by Moonshot. The startup Lindy also reported switching to DeepSeek to cut rising costs, as CNBC covered in June. This phenomenon is not isolated: according to Nikkei Asia, giants like AirBnB and Uber are accelerating their adoption of Chinese AI, partly due to the government-requested suspension of two Anthropic models. The trend highlights how companies seek cheaper alternatives amid escalating costs for advanced AI.
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State Department Accuses Chinese Models of Promoting Censorship
The State Department spokesperson stated that Chinese AI is designed to advance the Chinese Communist Party's narratives, censor dissent, and reflect regime ideology. These allegations come amid a growing technological rivalry between the two superpowers. The use of Chinese models by American companies, according to the government, could inadvertently spread propaganda and limit free speech, raising ethical and security concerns.
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Legal Hurdles to a Total Ban: The First Amendment Issue
It remains unclear whether the US can impose a direct ban on private sector use of Chinese AI models. Experts note that restricting open-source models could violate the First Amendment, which protects freedom of speech and information exchange. Moreover, regulating corporate activities beyond national borders is complex: for instance, Apple uses Alibaba's generative AI platform for iPhones sold in China, a choice dictated by local regulations. The administration may start by modifying its own procurement rules, leaving the private sector in a gray area.
China Responds with Backdoor Accusations and Similar Restrictions
The confrontation is not one-sided. Chinese authorities have engaged domestic companies to prevent the use of Chinese AI models abroad. China's Ministry of Industry and Information Technology accused Anthropic's Claude Code of containing a backdoor, calling it a serious threat. Concurrently, China is strengthening its own AI models to compete globally, as seen with the launch of OpenAI GPT-5.6 Sol, Luna, and Terra, though that is an American development. The tension between the two tech superpowers is set to escalate, with repercussions for the entire innovation ecosystem.
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For further reading, refer to the original Engadget article that first reported the news.
Source: https://www.engadget.com/2210340/us-reportedly-wants-to-restrict-corporate-use-chinese-ai
