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At close · Wed, Jul 22, 2026
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HomeGlobal MarketsTrade & TariffsUS signals potential sanctions threat over open source…

US signals potential sanctions threat over open source AI models

US Treasury Secretary Scott Bessent tied any action to concerns about alleged IP theft behind low cost AI models from overseas developers.

The South China Morning Post reports that U.S. Treasury Secretary Scott Bessent said the United States could take action against open source AI models following accusations that Chinese developers are creating low cost systems using stolen U.S. intellectual property.

Bessent said the administration supports open source models, but does not support IP theft, according to SCMP Economy.

He said that if the U.S. sees evidence of IP theft tied to overseas activity, it will consider steps that could include sanctions, as described in his remarks on Fox Business.

The comments come amid heightened scrutiny of AI development practices and the potential for U.S. measures to affect cross border access to AI technology.

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