Silicon Valley startups urge Trump to avoid blanket ban on Chinese AI
Founders shares many startups rely on open-weight AI models
Startup founders urged President Donald Trump not to restrict access to Chinese open-weight artificial intelligence models, warning that a blanket ban could undermine hundreds of US startups that rely on the technology. Nearly 200 Silicon Valley companies signed a letter calling on the administration to adopt targeted safeguards instead of broad restrictions.
Politico reported that the appeal, organised by the newly formed Little Tech Association, was sent to Trump, Commerce Secretary Howard Lutnick and White House Office of Science and Technology Policy Director Michael Kratsios. The group argued that continued access to open-weight AI models already available worldwide is essential for American developers and entrepreneurs.
Startups warn of higher costs
The letter comes as the Trump administration increases scrutiny of Chinese AI companies and weighs potential restrictions on open-weight models developed by firms such as Moonshot AI and Alibaba.
The startup founders argued that preventing Americans from downloading Chinese models would not stop their global availability but would instead place US startups at a competitive disadvantage.
Suhail Doshi, founder of AI infrastructure startup Particle and a member of the association, warned that many young companies could struggle to survive if they were forced to rely solely on more expensive AI services from companies such as Anthropic and OpenAI.
Administration weighs options
Reports that the administration was considering restrictions gained momentum after Moonshot AI unveiled its Kimi K3 model. While White House officials said no policy decision has been announced, administration figures have continued raising concerns about Chinese AI developers.
Treasury Secretary Scott Bessent said the government would investigate whether Chinese companies improperly used American AI models to develop their own systems. Kratsios separately alleged that Moonshot AI used large-scale model distillation involving Anthropic's technology and acquired advanced Nvidia servers despite US export restrictions. Moonshot has not publicly responded to those claims.
Industry split grows
The debate has exposed divisions within the AI industry. Companies such as Anthropic have supported stronger restrictions on Chinese AI developers over national security concerns, while many startups argue that broad bans would slow innovation and benefit only the largest AI providers.
Little Tech Association executive director Harry Godfrey urged policymakers to take what he described as a measured approach, arguing that any safeguards should address security risks without limiting access or increasing costs for American startups.