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China advances in AI, chips and robotics unsettle US tech and markets
The rise of free, open-weight AI models has fueled a split in US policy and industry over whether to restrict Chinese-made products.
China’s rapid progress in artificial intelligence, chip manufacturing and robotics has unsettled financial markets and shaken up the US tech industry and policy debate, according to the Guardian Business.
A key pressure point for Silicon Valley has been a wave of Chinese-made open-source, open-weight AI models that can be downloaded and used for free, with examples including Moonshot AI’s Kimi K3, which the outlet says can compete with some proprietary, paid offerings from OpenAI and Anthropic in certain applications.
The outlet reports that the emergence of these alternatives has contributed to divisions within both the White House and US tech leadership on whether to oppose or embrace the models. Chip makers and some tech companies see potential revenue from broader AI usage, while OpenAI and Anthropic face profit pressure from open source competition and argue Chinese-made models create security risks.
On the policy side, the Guardian Business says the Trump administration has been split, with Treasury Secretary Scott Bessent suggesting potential US sanctions on Chinese AI firms over alleged intellectual property theft, while Commerce Secretary Howard Lutnick received letters from startup founders urging him not to cut off access to open models as reports circulate about possible bans.