US Draws Two-Tier AI Line in China Clash
The Trump administration laid out a two-track AI policy toward China, backing open-weight models while accusing Chinese firms of industrial-scale distillation to steal U.S. tech. It distinguishes legitimate, small-scale distillation from covert IP theft, signaling possible sanctions or Entity List actions and preserving open AI development. The move follows tensions over Moonshot’s cheaper Kimi model and aims to keep open innovation intact while hardening the line against IP theft.