China's Open-Weight AI Surge Forces US Policy Reckoning

In the span of weeks, Chinese firms released several frontier-class AI models — including Alibaba's 2.4-trillion-parameter multimodal model and multiple DeepSeek releases running on domestic Huawei chips — demonstrating that US chip export controls have not halted China's AI advance. The White House accused Moonshot AI of distilling Anthropic's Fable model and the Treasury Department threatened sanctions against Chinese AI firms.