US Eyes Sanctions Over Chinese AI Distillation, Bessent Says
US Treasury Secretary Scott Bessent said the administration will investigate whether Chinese AI models were distilled from American ones and warned that sanctions could follow if IP theft is verified, as Chinese open-weight models gain ground on OpenAI and Anthropic; he cites watermarks on US models found in Chinese AI and notes that talks with China on AI are planned for September, amid broader concerns over intellectual property and competition in AI.
