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US grapples with rise of Chinese open-source AI

Jul 15, 2026, 6:49pm EDT
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OpenAI CEO Sam Altman, US President Donald Trump, Google DeepMind CEO Demis Hassabis, and South Korea’s President Lee Jae Myung
Evelyn Hockstein/Reuters

The ascendance of Chinese open-source AI poses an economic threat to the US, Palantir’s chief technology officer said, joining a chorus of American executives sounding the alarm on Beijing’s growing AI clout.

Chinese AI companies have been accused of ripping off the top American models through a process known as distillation, and US government officials “have limited tools to prevent the practice,” Semafor’s tech editor wrote.

While the US could attempt to stop American companies from using cheap Chinese open-source models by citing national security concerns, Washington should instead invest in building domestic alternatives, a Bloomberg columnist argued. That strategy could also help counter China’s efforts to present its tech “as a gift to the world,” The Economist wrote.

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