Nvidia warns US policies on open-weight models may push AI innovation toward China

Nvidia CEO Jensen Huang used his first-ever post on X to back a growing industry campaign in support of open-weight artificial intelligence models, joining more than 20 technology companies that argue new restrictions could hurt U.S. competitiveness instead of strengthening national security. The joint letter, signed by Nvidia, Microsoft, Meta, IBM, Palantir, Andreessen Horowitz, Hugging Face, Perplexity and the Linux Foundation, urges U.S. policymakers to avoid rules that could limit access to open-weight AI. Signatories say those models help expand innovation, improve cybersecurity and keep American AI development competitive as Chinese rivals rapidly advance. Industry rallies together Huang briefly explained Nvidia’s position in his debut X post. He wrote that AI will reshape industries worldwide and said both closed and open models have an important role. He added that open models strengthen safety, cybersecurity, and technological progress. The letter arrives during an intense debate over whether the United States should limit access to advanced open-weight AI models, particularly those developed in China. Unlike closed systems, open-weight models allow developers to download model weights, inspect them, and run them on their own hardware. For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.AI will transform every industry, power every company, and be built by every country.Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C— Jensen Huang (@JensenHuang) July 24, 2026 Supporters argue that openness improves resilience because researchers across the world can identify vulnerabilities more quickly. The group warned that concentrating advanced AI inside a handful of proprietary systems creates additional security risks and reduces independent oversight. OpenAI and Anthropic, two companies that have repeatedly raised concerns about Chinese AI models in Washington, did not sign the document. Chinese Models Shift Debate The industry’s push follows the release of Kimi K3 from Beijing-based Moonshot AI. The company claims its open-weight model delivers frontier-level performance while significantly reducing computing costs. Its arrival has intensified discussions over how the United States should respond to increasingly capable Chinese AI systems. Earlier this week, Huang also told Axios that American companies should remain free to use Chinese AI models. He dismissed widespread concerns about hidden backdoors as a misconception and argued that broader AI adoption ultimately increases demand for Nvidia’s computing hardware. His remarks came days after Treasury Secretary Scott Bessent said officials were reviewing whether Chinese AI companies trained their models using stolen U.S. intellectual property. The administration has indicated it could pursue sanctions if evidence supports those claims. Distillation sparks dispute The letter also challenges calls to restrict AI distillation, a technique that trains one model using another model’s outputs. OpenAI has accused some Chinese developers of misusing distillation to build competing systems. Signatories described distillation as a common engineering practice that helps improve AI performance when used appropriately. They argued policymakers should target actual intellectual property theft instead of limiting open-weight development across the industry. The paper also draws comparisons with the rise of open-source software decades ago. According to the group, open collaboration helped build critical internet infrastructure and many technologies used across the U.S. economy and military.Microsoft CEO Satya Nadella also shared the letter on social media. Elon Musk reposted it on X, saying it had his “full support,” although SpaceX did not officially sign the document. The coalition argues that preserving both frontier closed models and frontier open models will give the United States the strongest position in the global AI race, especially as international competition continues to accelerate.Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.Aamir is a seasoned tech journalist with experience at Exhibit Magazine, Republic World, and PR Newswire. With a deep love for all things tech and science, he has spent years decoding the latest innovations and exploring how they shape industries, lifestyles, and the future of humanity.