Startup founders urge Trump not to shut off Chinese open weight AI

Nearly 200 Silicon Valley companies, including the newly formed Little Tech Association, have appealed to the Trump administration not to restrict access to Chinese open-weight AI models. They argue that such a ban would cripple U.S. startups, which rely on these more affordable models, and potentially advantage larger U.S. AI firms. Instead, the association advocates for targeted safeguards over broad prohibitions, highlighting a growing divide within the AI industry.

• Almost 200 Silicon Valley companies are urging the Trump administration not to restrict access to Chinese open-weight AI models.
• The Little Tech Association sent letters to President Trump, Commerce Secretary Howard Lutnick, and other administration officials.
• Companies argue that banning access would cripple U.S. startups that rely on these models and would disadvantage them against larger U.S. AI companies.
• The White House has indicated it is considering actions against Chinese AI models, citing concerns about intellectual property theft and distillation of American models.
• Treasury Secretary Scott Bessent stated the administration would investigate potential IP theft by Chinese AI companies.
• Office of Science and Technology Policy Director Michael Kratsios alleged Moonshot AI distilled Anthropic’s Fable model and used banned Nvidia servers.
• The association proposes targeted safeguards instead of broad prohibitions.
• Some in the administration have suggested that reports of a blanket ban are baseless speculation.
  Continue reading https://www.businessinsider.com/startup-founders-trump-chinese-open-weight-ai-2026-7