Lawmakers Probe Growing Use of Chinese AI Models in U.S. Companies

Jul 8, 2026

U.S. lawmakers are investigating American companies like Cursor and Airbnb for their growing use of Chinese AI models, which are becoming cheaper and more powerful. The probe, led by two House Committees, stems from concerns that these models could advance Beijing's ideology and pose cybersecurity risks. While some advocate for procurement bans, experts note that banning open-source models is nearly impossible and could raise First Amendment issues.

Chinese AI model adoption

▪Chinese AI models are gaining adoption by U.S. companies as they become cheaper and closer in performance to American alternatives.
▪Airbnb stated it uses a limited number of open-source Chinese AI models via U.S.-based service providers to protect its data and operations.
▪The company Cursor built its Composer 2 model using Kimi, an AI model developed by China-based Moonshot AI.
▪Tech executives, including Coinbase's Brian Armstrong and Lindy's Flo Crivello, have publicly advocated for using Chinese AI models to lower costs.

U.S.-China AI rivalry

▪In April, the Trump administration accused Chinese entities of "industrial-scale campaigns" to steal U.S. AI systems.
▪A spokesperson for China's U.K. embassy stated that the country opposes "baseless allegations" and its AI sector is built on self-reliance.
▪The U.S. and China are engaged in a rivalry for supremacy in the field of artificial intelligence.
▪A U.S. State Department spokesperson said Chinese AI models are designed to advance Beijing's narratives and reflect CCP ideology.

Congressional investigation

▪The joint House investigation is also examining if the U.S. has an adequate open-weight AI strategy to ensure American models remain competitive.
▪In April, the House Committee on Homeland Security and the House Select Committee on China began a joint investigation into U.S. companies' adoption of Chinese AI models.
▪Homeland Security Committee Chairman Andrew Garbarino called recent reports that a Chinese AI model can match U.S. models in cybersecurity tasks "highly alarming."
▪As an initial step in the probe, the committees' chairmen sent letters to Cursor and Airbnb about their use of Chinese AI.

Regulatory challenges

▪While some U.S. government departments have banned Chinese AI models like DeepSeek, there is no general prohibition on their use by private companies.
▪An expert from the Center for a New American Security suggested the Trump administration may be hesitant to restrict Chinese AI models to avoid harming U.S. startups.
▪Banning Chinese open-source AI models is considered "ultimately impossible" as their model weights are freely available online, potentially raising First Amendment issues.
▪An expert from the Brookings Institution suggested the U.S. could use federal procurement bans to restrict the use of Chinese AI by government agencies and contractors.

Open-source model strategy

▪Subcommittee Chairman Andy Ogles has called for a "serious strategy" to make American AI models a "real alternative" to those from China.
▪Rep. Andy Ogles warned that without action, Chinese AI models could become the "default foundation of the global digital economy," embedding censorship and security risks.