Bessent says US needs more open-source AI models to compete with China
Reflection AI has released Beam, an open-source model designed as a Western alternative to AI developed in Chinese labs. The model provides new options for governments and companies in the West that are unable or unwilling to utilize Chinese technology. This launch aligns with Treasury Secretary Scott Bessent's recent arguments that the US requires more open-source models to maintain a competitive edge against Beijing.
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- ✓ Reflection AI released an open-source model called Beam.
- ✓ Beam is intended for Western companies and governments that cannot or will not use Chinese models.
What changed
Reflection AI unveiled Beam as an open-source Western answer to Chinese labs.
Live updates
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Reflection AI launches Beam open-source model to counter Chinese labs
Reflection AI has released Beam, an open-source model designed as a Western alternative to AI developed in Chinese labs. The model provides new options for governments and companies in the West that are unable or unwilling to utilize Chinese technology. This launch aligns with Treasury Secretary Scott Bessent's recent arguments that the US requires more open-source models to maintain a competitive edge against Beijing.
Why it matters
Treasury Secretary Scott Bessent has warned that Chinese firms use industrial distillation to steal US AI models. He believes open-source development is necessary to counter Beijing's strategy.
What is confirmed
- Reflection AI released an open-source model called Beam.
- Beam is intended for Western companies and governments that cannot or will not use Chinese models.
Still unconfirmed
- The US plans to propose a notification system to China for flagging major AI incidents.
What to watch next
- China's response to the release of Beam
- Implementation of the proposed US-China AI incident notification system
confidence 90%Sources used for this update (2)
- michaelharrison.org.uk — An alternative view of the world – 2026 – updated September 25
- www.semafor.com — Reflection AI unveils an open-source Western answer to Chinese labs
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Bessent Accuses China of Stealing AI Models via Industrial Distillation
Treasury Secretary Scott Bessent claims Chinese firms use "industrial distillation" to steal US AI models, asserting Beijing has recognized the power of open-source models over the last 60 days. While Bessent advocates for more open-source models to maintain a technological edge, he rejects government intervention in Silicon Valley, comparing CEOs who warn of AI catastrophe to Hannibal Lecter. To manage risks, the US plans to propose a notification system to China for flagging major AI incidents, a move Bessent believes Beijing will accept.
Why it matters
The US seeks to outcompete China on technology while cooperating on AI risk mitigation. This tension persists following a Washington meeting between President Donald Trump and President Xi Jinping where AI was a point of contention.
What is confirmed
- Treasury Secretary Scott Bessent was appointed on January 28, 2025.
- Bessent believes the US government does not need to intervene in Silicon Valley.
- The US intends to propose a notification system with China to flag AI incidents.
- Bessent argues the US needs more open-source AI models to compete with China.
Still unconfirmed
- Bessent alleged that China's Kimi model thinks it is Claude and sent PLA weapons plans to Anthropic.
- Bessent claims China has woken up to the power of open-source models over the past 60 days.
- Bessent described industrial distillation as a nice word for stealing from US models.
What to watch next
- China's response to the proposed AI incident notification system
- Official US policy changes regarding open-source AI development
- Evidence of industrial distillation used by Chinese AI firms
confidence 90%Sources used for this update (10)
- www.foxbusiness.com — Scott Bessent
- www.gulf-times.com — Kamran Rehmat - Gulf Times
- www.yahoo.com — Why the U.S. Must Simultaneously Compete—and Cooperate—With China on AI
- asiatimes.com — What does it mean to win the AI race? - Asia Times
- www.businessinsider.com — Scott Bessent compares AI CEOs who warn of catastrophe to Hannibal Lecter: 'Stop me before I kill again'
- www.timesnownews.com — US Plans to Ask China to Join AI Warning System, Says Bessent
- www.chosun.com — US Treasury Secretary Stresses Safe AI Acceleration to ...
- scanx.trade — Bessent accuses China of stealing U.S. AI models via distillation
- blog.thinksabio.com — U.S. TREASURY SECRETARY BESSENT SAYS ON CHINA THAT OVER T...
- mag.commonplace.org — The Real Economy: Treasury (Man) Bites Hedge Fund (Dog)
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US and China in AI talks as competition heats up
The US and China are holding discussions on artificial intelligence, including a proposed mechanism for notifying each other of major AI incidents. US Treasury Secretary Scott Bessent argues that the US needs more open-source AI models to compete with China. The talks precede a summit between US President Donald Trump and Chinese President Xi Jinping, covering trade, AI, and other issues.
Why it matters
The AI rivalry between the US and China is expanding beyond models and advanced semiconductors into safety rules, data centers, and capital markets. The relationship between the two countries is increasingly characterized by sustained strategic competition, yet also interdependence. The AI dialogue is an effort to establish guardrails and prevent risks associated with AI development.
What is confirmed
- The US and China are quietly talking AI guardrails.
- US Treasury Secretary Scott Bessent proposed an AI incident notification mechanism.
- Bessent argues that the US needs more open-source AI models to compete with China.
- The AI rivalry between the US and China is expanding into safety rules, data centers, and capital markets.
Still unconfirmed
- China is reportedly mulling letting ByteDance, Alibaba buy banned Nvidia chips.
What to watch next
- The outcome of the Trump-Xi summit on AI and trade
- The development of open-source AI models in the US and China
- The establishment of international governance structures for AI development
confidence 80%Sources used for this update (19)
- www.foxbusiness.com — China News & Latest Country Updates | Fox Business
- arstechnica.com — Trump’s China rivalry and “AI race” delusion may endanger US, experts say
- stocktwits.com — MCD Stock Heads For Worst Month Since Pandemic — CFO Warns Even A September US Sales Rebound May Not Sa....
- www.brookings.edu — Is the AI existential threat real—and can regulatory action prevent it? | Brookings
- stocktwits.com — ONDS Stock Set To Snap 4-Week Slide — Retail Bulls See Palantir-Style Play In Fresh Defense Deals
- fortune.com — The U.S. and China are quietly talking AI guardrails—even as ...
- www.koreaittimes.com — [Insight] Trump-Xi Summit on Sept. 24 — AI Technology Rivalry and Capital Interdependence
- theweek.com — Can the US and China cooperate on AI dangers? | The Week
- grenadachronicle.com — China vs US: Who is winning the AI race, in four charts - Grenada Chronicle – Daily Grenada And Caribbe....
- www.straitstimes.com — Alibaba unveils powerful AI chip to boost data-centre expansion
- dawatmedia24.com — Washington and Beijing: From Crisis Management to the Architecture of Understanding - DawatMedia24
- www.ainchina.com — US-China AI Summit: The Open-Source Reckoning | AI in China
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Xi Jinping Arrives in Washington for State Visit
Chinese President Xi Jinping arrived in Washington on Wednesday for a three-day state visit to meet with President Donald Trump. This diplomatic engagement follows weekend discussions between the two nations led by Treasury Secretary Scott Bessent, who proposed an AI incident notification mechanism and argued that the U.S. needs more open-source AI models to compete with China. Bessent also maintains that AI creators should bear liability for generated outcomes rather than the technology itself. The talks precede discussions covering trade and artificial intelligence.
Why it matters
The state visit marks a high-stakes diplomatic encounter addressing major economic and technological frictions between Washington and Beijing. Treasury Secretary Bessent's recent focus on open-source artificial intelligence and safety notification mechanisms highlights the growing integration of tech policy into superpower relations. These discussions set the baseline for bilateral negotiations on trade and intelligence coordination.
What is confirmed
- Chinese President Xi Jinping arrived in Washington on Wednesday for a three-day visit.
What to watch next
- Outcomes and joint statements emerging from the state visit between President Donald Trump and Chinese leader Xi Jinping.
- Further announcements regarding U.S.-China artificial intelligence agreements and notification mechanisms.
confidence 100%Sources used for this update (3)
- timesofindia.indiatimes.com — Xi Jinping US Visit Live Updates: 'China's position is crystal clear' - Xi urges Trump to exercise prudence on Taiwan
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US proposes AI incident notification system to China
Treasury Secretary Scott Bessent announced Sunday that the U.S. has proposed a notification mechanism to alert China of AI incidents threatening national security. This proposal emerged from weekend discussions between the two nations. Bessent maintains that the U.S. requires more open-source AI models to compete with China and argues that AI creators, rather than the technology itself, should be held liable for generated outcomes. These diplomatic efforts precede a scheduled meeting between President Donald Trump and Chinese leader Xi Jinping in Washington next week.
Why it matters
The U.S. and China currently view one another as the main barriers to a global AI safety strategy. While the AI industry seeks a consensus on the speed of frontier development, the U.S. government is balancing competitive openness with national security risks.
What is confirmed
- The U.S. proposed a notification mechanism to China for AI incidents that could affect national security.
- Treasury Secretary Scott Bessent discussed the AI notification proposal on Sunday.
What to watch next
- The outcome of the Washington meeting between President Trump and leader Xi Jinping next week
- China's formal response to the proposed AI incident notification mechanism
confidence 100%Sources used for this update (3)
- www.yahoo.com — Full transcript of "Face the Nation with Margaret Brennan," Sept. 20, 2026
- www.yahoo.com — Bessent: US proposes AI incident alert system in talks with China
- www.wired.com — US and China Discuss Alerting Each Other to AI National Security Threats
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Trump and Xi to discuss AI governance during Washington meeting
President Donald Trump and Chinese leader Xi Jinping will meet in Washington next week to discuss AI governance. This meeting occurs as Treasury Secretary Scott Bessent advocates for more open-source AI models to maintain a U.S. competitive edge over China. Bessent opposes current AI regulations, proposing instead that creators be held liable for the outcomes of their generated content. While the AI industry is currently seeking consensus on pacing frontier development, the U.S. and China continue to view each other as the primary obstacle to a global safety strategy.
Why it matters
The race for AI supremacy is a central point of tension between the U.S. and China. Bessent believes losing this competition would render other policy goals irrelevant. The upcoming diplomatic meeting serves as a venue to address these strategic and safety concerns.
What is confirmed
- President Donald Trump and Chinese leader Xi Jinping have a planned meeting in Washington next week.
- AI governance is expected to be a topic of discussion during the Trump-Xi meeting.
Still unconfirmed
- OpenAI CEO Sam Altman and Apple CEO Tim Cook plan to attend a state dinner hosted by Donald Trump for Xi Jinping.
- Frontier labs, policymakers, and the U.S. public have reached a consensus on calls to pace AI development.
What to watch next
- The outcome of the Trump-Xi meeting regarding AI governance
- Official confirmation of tech executive attendance at the state dinner
- Legislative action on AI creator liability proposed by Bessent
confidence 90%Sources used for this update (3)
- www.csis.org — The AI Industry Is Coalescing on “Pacing the Frontier.” Will It Actually Change Anything?
- www.foxbusiness.com — Tech power players land seat at table for high-stakes dinner with Trump, Xi
- www.pbs.org — A global AI safety strategy depends on U.S.-China cooperation. They each see the other as the problem
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Treasury Secretary Bessent advocates for open-source AI to counter China
Treasury Secretary Scott Bessent is pushing for more open-source AI models to ensure the U.S. remains competitive against China, warning that nothing else would matter if China wins the AI race. While defending the Trump administration's safety stance, Bessent told lawmakers he has not seen any AI regulation he would support. He argues that the most effective safety system is holding AI creators liable for the outcomes of what they build and generate, cautioning Congress against giving AI companies what they want.
Why it matters
The U.S. is currently balancing the need for rapid AI innovation against the risks of uncontrolled deployment. This debate centers on whether government regulation or industry liability provides the best guardrail for safety.
What is confirmed
- Scott Bessent stated the U.S. needs more open-source AI models to compete with China.
- Bessent warned that nothing else would matter if China wins the AI race.
- Bessent told Congress he has not seen any AI regulation he would support.
- Bessent believes AI creators should not be relieved of liability for their outcomes.
- Bessent defended the Trump administration's safety stance on AI.
Still unconfirmed
- The United States is willing to discuss AI risks with China.
- AI companies could stop their operations any time they want to.
- Representative Waters had a heated exchange with Bessent regarding AI.
- A Democratic representative asked Bessent to talk sense into Trump regarding AI regulation.
What to watch next
- Introduction of specific AI liability legislation in Congress
- Official diplomatic meetings between the U.S. and China regarding AI risk management
- Proposed shifts in the Trump administration's AI safety framework
confidence 90%Sources used for this update (10)
- Fox Business — Bessent says US needs more open-source AI models to compete with China
- Yahoo Finance — Bessent defends Trump administration's safety stance on AI
- The Hill — Waters has heated exchange with Bessent on AI
- Politico — Bessent: AI companies ‘could stop any time they want to’
- Bloomberg.com — Bessent Warns ‘Nothing Else Would Matter’ If China Wins AI Race
- TradingView — US TSY'S BESSENT Q&A: A.I. CREATORS SHOULD NOT BE RELIEVED OF LIABILITY FOR THEIR OUTCOMES; LIABILITY IS BEST SAFETY SYSTEM
- The Hill — Dem rep asks Bessent to ‘talk sense’ into Trump on regulating AI
- Yahoo — Bessent Tells Congress He Hasn’t Seen Any AI Regulation He Would Support: ‘I Haven’t Seen Anything Yet’
- www.pymnts.com — Bessent Says US May Discuss AI Risks With China
- gizmodo.com — Don’t Give AI Companies What They Want, U.S. Treasury Secretary Tells Lawmakers
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