US startups push back against Trump on Chinese AI ban

American startups and small technology companies have publicly opposed moves to block access to Chinese open-weight AI models, even as Moonshot AI's latest open-weight model, Kimi K3, draws growing attention in the global AI market.

The Little Tech Association, a recently formed US small-tech industry group, sent a joint letter Wednesday to President Donald Trump, Commerce Secretary Howard Lutnick and White House Office of Science and Technology Policy Director Michael Kratsios, urging the administration not to restrict American developers' access to Chinese open-weight AI models.

"Such regulations could hinder the growth of next-generation American startups," the association warned. The group counts about 200 Silicon Valley companies among its members, including encrypted email service provider Proton and startup accelerator Y Combinator.

Politico described the letter as "the first time the influential startup community in Silicon Valley has organized to take a position on a core AI policy of the Trump administration."

In the letter, the group argued that American leadership requires two things: "world-class American-made open-weight models" and continued access for US developers to open-weight models already available worldwide.

The association also said banning downloads of Chinese open-weight models would not stop their proliferation, and called for targeted safeguards rather than a blanket prohibition.

Suhail Doshi, founder of AI infrastructure startup Particle and a member of the association, told Politico that a ban on access to Chinese open-weight models would cause "hundreds of companies to shut down immediately." He added, "This would be great for Anthropic, and we'd all have to invest in Anthropic."

The White House has yet to offer a clear answer on the matter.

White House spokesperson Liz Huston said in a statement that "America is leading the world in AI innovation, and President Trump will keep it that way," adding that the Trump administration "is accelerating innovation to further widen the gap between the United States and the rest of the world."

An anonymous White House official said regarding the possibility of regulations on Chinese models that "whatever policy comes out will be announced by the administration directly, and until then, all reporting is baseless speculation."

Politico, citing anonymous sources, said the issue was discussed among senior White House officials and cabinet members Monday night, but that an outright ban on Chinese open-weight models was not seriously considered.

Harry Godfrey, executive director of the Little Tech Association, said the government "should use a scalpel, not a hammer," adding that it is important to "find the most precise approach that can legitimately address security concerns without raising costs, restricting access or stifling innovation for American companies."