U.S. lawmakers are considering how to curb the growing adoption of Chinese AI models by homegrown companies, as geopolitical tensions surrounding the rollout of artificial intelligence continue to escalate.
Chinese models are gaining traction among U.S. firms as they close the performance gap with American rivals while being significantly cheaper to use. The trend has triggered an investigation from two U.S. House Committees — the Committee on Homeland Security and the Select Committee on China — who are jointly examining the risks.
"The Chinese Communist Party is no longer just nipping at our heels in artificial intelligence; it is racing to close the gap in some of the exact capabilities that will shape the future of cybersecurity," Rep. Andrew Garbarino, chairman of the Homeland Security Committee, told CNBC.
Cursor and Airbnb Under Scrutiny
The initial step in the probe involved sending letters to Cursor — the AI coding startup being acquired by Elon Musk's SpaceX for $60 billion — and Airbnb, over their use of Chinese-developed AI models.
Cursor built its Composer 2 model using Chinese AI model Kimi, developed by Moonshot AI. Airbnb told CNBC that its AI activity "runs overwhelmingly on U.S.-origin models" but acknowledged using a "limited number of China-origin models, all of which are open-source and run only through approved U.S.-based service providers."
A State Department spokesperson warned that Chinese AI models "are designed to advance Beijing's narratives, censor dissent, and reflect CCP ideology and values."
A spokesperson for the Chinese embassy in the U.K. responded that China "opposes baseless allegations and malicious smears against its AI development" and that its "thriving AI sector is built on self-reliance and strength in science and technology."
The Challenge of Restricting Open-Source
While some government departments have banned the use of Chinese AI models including DeepSeek, adoption by U.S. companies is not prohibited. Tech leaders including Coinbase's Brian Armstrong and Lindy AI's Flo Crivello have publicly touted the use of Chinese models to reduce costs.
However, restricting open-source AI models presents unique challenges. "It's ultimately impossible to ban China's open-source AI models because their model weights are available freely on the internet," said Kyle Chan of the Brookings Institution. "This could enter into First Amendment speech issues."
The committees are also examining whether the U.S. has a sufficient open-weight AI strategy to ensure American companies don't have to choose between "expensive or restricted U.S. models and cheap, capable PRC-developed alternatives."
Rep. Andy Ogles, chairman of the Subcommittee on Cybersecurity and Infrastructure Protection, warned: "If we do nothing, Chinese models become the default foundation of the global digital economy, carrying embedded censorship, uncertain security, and capabilities distilled from our own laboratories with safety guardrails stripped out."
