Two U.S. House Committees launched a joint investigation in April into the growing adoption of Chinese-developed AI models by American companies. The House Committee on Homeland Security and the House Select Committee on China initiated the probe over concerns that Chinese AI models raise security risks as they gain traction among U.S. firms. A State Department spokesperson told CNBC those AI models are designed to advance Beijing's narratives, censor dissent, and reflect CCP ideology and values. AI has emerged as a key point of rivalry between the U.S. and China, with both nations vying for supremacy in the field.
House Committees Target Cursor and Airbnb in Investigation
The chairmen of the two committees sent letters to Cursor and Airbnb in April over their use of or exposure to risks through AI developed in China. Cursor built its Composer 2 model using Chinese AI model Kimi, which was developed by Moonshot AI. SpaceX is acquiring Cursor for $60 billion. Andrew Garbarino, chairman of the U.S. House Committee on Homeland Security, told CNBC that recent reporting shows a Chinese open-weight model can match leading U.S. models in certain vulnerability discovery and cybersecurity tasks. Tech chiefs including Coinbase's Brian Armstrong and AI startup Lindy's Flo Crivello have publicly touted the use of models from China to reduce costs. While some government departments have banned the usage of Chinese AI models including DeepSeek, adoption of them by U.S. companies is not prohibited.
Companies Respond to Congressional Inquiry
Cursor declined to comment on the probe when approached by CNBC. Airbnb told CNBC that its AI activity runs overwhelmingly on U.S.-origin models. The company added that it uses a limited number of China-origin models, all of which are open-source and run only through approved U.S.-based service providers, keeping data and operations separate and protected. A spokesperson for the U.K. embassy of the People's Republic of China said the country opposes baseless allegations and malicious smears against its AI development. They added that China's thriving AI sector is built on self-reliance and strength in science and technology.
Lawmakers Explore Federal Procurement Restrictions
A Committee aide told CNBC the Committees are examining whether the United States has a sufficient open-weight AI strategy to ensure American companies and cyber defenders are not forced to choose between expensive or restricted U.S. models and cheap, capable PRC-developed alternatives. Andy Ogles, chairman of the Subcommittee on Cybersecurity and Infrastructure Protection, said in June that when the cheap, capable, easy option for an AI model is Chinese, the rest of the world will build on it. Kyle Chan, fellow in the John L. Thornton China Center at think tank Brookings, told CNBC the administration could consider the use of federal procurement bans, which would include restricting government agencies and private companies that serve the U.S. government from using Chinese AI models. Daniel Remler, senior fellow at the Center for a New American Security, told CNBC one approach could be procurement requirements that discourage companies that want to do business with the government from using Chinese AI models. Another could be disseminating findings about risks and vulnerabilities associated with Chinese AI models to U.S. companies.
FAQ
What did the House Committees investigate in April regarding Chinese AI?
The House Committee on Homeland Security and the House Select Committee on China launched a joint investigation in April into the growing adoption of Chinese-developed AI models by American companies. The probe focuses on security concerns as Chinese models gain traction among U.S. firms.
Which companies received letters from the House Committees?
The chairmen of the two committees sent letters to Cursor and Airbnb in April over their use of or exposure to risks through AI developed in China. Cursor built its Composer 2 model using Chinese AI model Kimi from Moonshot AI, while Airbnb stated it uses a limited number of China-origin open-source models through U.S.-based service providers.
What restrictions are lawmakers considering on Chinese AI models?
Lawmakers are examining federal procurement bans that would restrict government agencies and private companies serving the U.S. government from using Chinese AI models. Other approaches discussed include procurement requirements discouraging government contractors from using Chinese models and disseminating risk findings to U.S. companies.
