China Hardens AI Wall: Overseas Access For DeepSeek, Future Models To Be Curbed

The discussions highlight how China, like the US, is now viewing cutting-edge artificial intelligence as a vital national asset that requires regulations.

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Chinese AI models have gained significant traction worldwide with the release of DeepSeek's R1 model last year.
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Chinese authorities have met with leading tech companies over the past month about the possibility of limiting foreign access to China's most cutting-edge AI models, even some that have not yet been made public, according to three people familiar with the discussion.

The discussions highlight how China, like the United States, is now viewing cutting-edge artificial intelligence as a vital national asset that requires regulations, and they come after Beijing has taken several moves to keep domestic AI in the nation, as per a report by Reuters.

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Tech giants like Alibaba and ByteDance, as well as startup Z.ai, were among the companies in attendance, the report said, citing sources.

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Chinese AI models have gained significant traction worldwide with the release of DeepSeek's R1 model last year because of their affordability and growing capabilities. Beijing's plan to restrict access to certain products could have an impact on the AI markets since it would probably raise prices for many companies.

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According to two of the individuals, participants in the talks, which were organised by China's Ministry of Commerce, talked about limiting the most sophisticated AI models, both closed-source and more open versions.

According to one of the insiders cited by Reuters, officials discussed making any theft or leak of intellectual AI technology illegal under China's strict national security law.

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According to the source, the officials also mentioned the prospect of enacting new regulations to limit who can provide funding to domestic AI businesses.

As per the report, the extent of the possible limitations is still up for debate and might only be applicable to models that are developed in the future. When or even if they would take effect was not immediately apparent.

Each of the three businesses offers a variety of AI models, some of which are open-source—that is, users may download, operate, and modify the underlying systems—while others are closed-source.

Two of the sources told Reuters that Chinese authorities are extremely concerned that Washington may use the model against Chinese interests and that Mythos might exploit software weaknesses.

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This is consistent with the worries expressed in public by state media and Zhou Hongyi, the founder of 360, a cybersecurity company that serves government and business clients. Hongyi has stated that China must create its own mythology.

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China has taken some steps to safeguard its own AI this year.

The nation's state planner ordered Meta to cancel its $2 billion purchase of Manus, an AI startup based in China, in April.

Authorities tightened control over international transactions involving Chinese investors, technology, data, and national security in early June by issuing broad new regulations.

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