Trump Crypto Firm Backs Platform Selling Chinese AI Models Flagged by His Own Administration

Insight: Trump crypto firm backs venture offering AI from restricted Chinese companies

BOSTON, Aug 17 (Reuters) - President Donald Trump-backed World Liberty Financial is collaborating with a Hong Kong-based venture offering artificial-intelligence models developed by Chinese companies the U.S. administration has flagged for national security concerns. WorldClaw, founded earlier this year, offers customers access to a suite of AI models and accepts World Liberty's crypto tokens as payment. The Trump family, through its ownership stake, earns revenue from the use of World Liberty's tokens. A Reuters review found that 43 of the 90 models available through WorldClaw's website, or nearly half, were developed by Alibaba, Baidu, Z.ai and other Chinese technology companies the Trump administration says pose risks to national security and intellectual property. WorldClaw also offers access to dozens of models from U.S. firms such as OpenAI and Anthropic. There's nothing illegal about World Liberty's collaboration with WorldClaw or with WorldClaw's relationships with the Chinese companies. And such Chinese models, which are typically less expensive, are gaining traction globally, including among U.S. tech companies. Still, seven experts on Chinese technology, trade and government ethics said the business collaboration -- and the potential profits for President Trump through World Liberty -- runs counter to his administration's stance towards Chinese tech companies. "As the U.S. government tries to respond to the rise and threat of Chinese AI, it seems hypocritical to go out through WorldClaw to use these tools from China to try and make a bunch of money," said Sam Bresnick, a fellow at Georgetown University's Center for Security and Emerging Technology. Reuters could not establish the details of World Liberty's financial arrangements with WorldClaw or how much money the Trump family has made from crypto payments on the platform. The president's two eldest sons have publicly promoted WorldClaw, and a World Liberty executive has worked as an advisor to WorldClaw. World Liberty makes money from the use of its USD1 stablecoin, including when WorldClaw users elect it as their mode of payment for access to AI models. Like other U.S. dollar-based stablecoins, USD1 is ⁠backed by traditional assets like U.S. Treasury securities so that it maintains a constant value. The Trumps areentitled to a percentage of the interest earned on those assets. White House spokesperson Anna Kelly said in a statement that "there are no conflicts of interest" in the relationship between World Liberty and WorldClaw and that "President Trump only acts in the best interests of the American public." David Wachsman, a spokesman for World Liberty, said WorldClaw was an independent company and noted that major U.S. firms offer AI from Chinese as well as American tech companies. "This is a common and widely accepted approach," he said in an email. A WorldClaw spokesperson said in a statement that the company "helps American AI companies reach international users" and that "making a model available does not constitute an endorsement of its developer." CONCERNS GROW OVER AI ARMS RACE The Chinese AI models offered by WorldClaw are generally legal for individuals and businesses to use in the United States. But some of the Chinese companies producing them face U.S. government restrictions because of national-security concerns. The AI models offered by WorldClaw include those made by tech giants Alibaba and Baidu, which the U.S. Department of Defense has designated as Chinese military-aligned companies. The designation blocks the Pentagon from doing business with these Chinese firms. Other models come from Z.ai, formerly Zhipu AI, which is on the Department of Commerce's "entity list," a designation which severely restricts access to U.S. technology. Any U.S. company looking to sell products or services to companies on the entity list would have to apply for an export license, with a presumption of denial. According to the government listing, Z.ai advances China's "military modernization through the development and integration of advanced artificial intelligence research," which is "contrary to the national security and foreign policy interests." Also on offer are models from DeepSeek and Moonshot, Chinese tech companies which Trump administration officials have recently accused of stealing intellectual property from U.S. AI rivals. Baidu, Z.ai, DeepSeek and Moonshot did not respond to requests for comment. Alibaba, Baidu and Z.ai have disputed the U.S. government's determination that they are aligned with the Chinese military, while the Chinese government ⁠has disputed the claims of technology theft. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," an Alibaba spokesperson said in an emailed statement. The spokesperson said the company's inclusion on the Pentagon's list was "arbitrary and capricious" and that Alibaba would sue to demand its removal. The Trump administration's response to fast-advancing Chinese AI models remains in flux. Early in his second term, Trump said it was important for the U.S. to beat China in technology and AI development. More recently, China and the U.S. have grown increasingly concerned about an AI arms race and tried to reduce tensions ahead of the planned summit next month between Trump and President Xi Jinping. "On one hand, people could say this is a China-hawk administration, and there is a tension with this type of business collaboration," said Peter Jeydel, an attorney who leads the sanctions and trade controls team at Troutman Pepper Locke in Washington. "On the other hand, it can be argued that this Trump presidency has been less aggressive in targeting Chinese companies in favor of a business-first approach. This collaboration would be consistent with that." The Departments of Commerce and Defense ⁠did not respond to questions from Reuters about WorldClaw. TRUMP SONS PROMOTE WORLDCLAW ON X Little is publicly known about WorldClaw. The company said through its spokesperson that it is an "independently owned and operated AI company" and its website says it is "not offered, managed, or controlled in any way" by World Liberty or its affiliates. But the two companies benefit from working together. The Trump family owns 38% of World Liberty and makes money through the sale or use of its crypto tokens, the $WLFI governance token and USD1 stablecoin. WorldClaw accepts USD1 as payment for services, among other forms of cryptocurrency. The WorldClaw spokesperson said that Ryan Fang, World Liberty's head of growth, has been a "helpful external adviser and supporter of WorldClaw, particularly regarding USD1 adoption, partnerships, and expanding global access ⁠to AI services." The spokesperson said Fang's role was "strictly advisory." The president's sons -- co-founders of World Liberty -- have promoted WorldClaw on social media platform X. Donald Trump Jr., said, opens new tab in May that he would meet winners of a WorldClaw contest at Mar-a-Lago, the family's club in Florida, while Eric Trump hailed the collaboration in a post, opens new tab as "the future of finance." So far, the Trump family's earnings from World Liberty token sales total more than $1.4 billion, the largest piece of the $2.3 billion the family has made from crypto, Reuters reported in June. While Trump sons Don Jr. and Eric operate the family business, known as the Trump Organization, the president retains ownership through a trust. CHINESE AI MAY PRESENT SECURITY RISKS WorldClaw's website says its ⁠WorldRouter tool, which functions as an aggregator providing access to various AI models, has more than 10,000 users, with more than 50 million requested tasks a day. WorldClaw is also developing an application for use of AI agents to perform personal tasks such as ordering food or summarizing emails, according to its website. Daniel Remler, a senior fellow at the Center for a New American Security and until recently a policy advisor at the U.S. State Department, said the Chinese AI models offered on WorldClaw could expose users to various risks: monitoring by the Chinese government, outputs that are censored, and the injection of malicious code that can hijack AI agents. The company says on its website that WorldClaw may share user inputs with the companies that provide its AI models. The WorldClaw spokesperson said that the company takes security seriously and applies privacy and security safeguards to its platform. Reporting by Lawrence Delevingne; Editing by Paritosh Bansal and Suzanne Goldenberg Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Currencies Lawrence Delevingne Thomson Reuters Delevingne works primarily on enterprise stories related to finance. He joined Reuters in 2015 and previously reported for CNBC.com and Absolute Return. Delevingne is a graduate of Columbia's Graduate School of Journalism and Georgetown's School of Foreign Service.

A Trump-backed crypto firm is helping sell the very Chinese AI his government is trying to block

World Liberty Financial, the Trump family's crypto venture, is behind WorldClaw, a Hong Kong platform reselling models from US-restricted Chinese labs, payable in the family's own stablecoin. A crypto venture backed by Donald Trump and his family is helping to bankroll a platform that resells artificial intelligence from Chinese companies the US government has blacklisted, an arrangement that sits awkwardly beside the administration's own campaign to choke off China's AI industry. Reuters reported on Monday that World Liberty Financial, the Trump-linked crypto firm, is behind WorldClaw, a Hong Kong-based service offering access to models from developers Washington has flagged as security risks. WorldClaw's pitch is a menu of roughly 90 AI models, of which about 43 come from Chinese companies. They reportedly include Alibaba and Baidu, both designated by the Pentagon as aligned with China's military, and Z.ai, which is subject to US Commerce Department export restrictions. The line-up is also said to feature DeepSeek and Moonshot, two labs that American officials have accused of building their systems on stolen US technology. Models from OpenAI and Anthropic sit on the very same shelf. The financial plumbing is what turns an unremarkable AI reseller into a political problem. Customers can pay for WorldClaw using USD1, World Liberty Financial's dollar-pegged stablecoin, and each such transaction stands to benefit the venture, in which the Trump family is reported to hold a stake of around 38%. Put plainly, the president's family could earn from Americans buying access to the Chinese AI that the president's own government is straining to keep out. That is the crux of the discomfort. The administration has made countering Chinese AI a centrepiece of policy, from export controls on advanced chips to public accusations that Chinese labs are copying American models at industrial scale. A Trump-branded venture positioned to profit from selling those same models is, at the very least, an unusually literal collision between public policy and private interest. The tension is not abstract: the harder the administration pushes to restrict a given Chinese lab, the more valuable a frictionless way to buy its models quietly becomes. World Liberty and WorldClaw reject that framing. The two say they operate independently of one another, and that listing an AI model does not amount to endorsing its developer, no more than an app store vouches for every app it carries. The White House, for its part, has repeatedly maintained that Trump acts only in the public interest and holds no conflicts of interest, a position it restated in response to the reporting. World Liberty Financial has become the most lucrative and most scrutinised of the family's crypto ventures. It has drawn attention both for the scale of money involved and for the unusual company it has sometimes kept, and the president's crypto holdings have swelled into the billions on paper even as ethics lawyers warn about the fading line between the family business and the office he holds. The firm has lately pushed deeper into the mainstream too, winning preliminary US approval for a national bank charter tied to the same USD1 stablecoin that now doubles as a payment rail for WorldClaw. The WorldClaw arrangement crystallises a tension the crypto and AI booms keep throwing up: rules written in Washington, money made everywhere else. Stablecoins move value across borders with almost no friction, and a reseller in Hong Kong can offer a restricted Chinese model to a buyer in Ohio in a few clicks. Export controls were built for shipping containers and data centres, not for a checkout page settled in a president-linked token. None of this is unlawful on its face, and WorldClaw is far from the only route to a Chinese model. But the optics are striking, and the episode will sharpen an already loud argument about whether the Trump family's crypto empire can sit comfortably alongside the powers of the presidency. For now, the same government trying to wall off Chinese AI has a first family placed, however indirectly, to take a cut when Americans buy it regardless.

Trump Kids Back Venture That Sidesteps Trump Administration's AI Firewall

The Trump administration is telling the world to pick a side in the artificial intelligence race: America or China. The Trump children are telling the world, "We know where the back door is if you want in." According to Reuters, as Trump and company continue to refine their AI policy and close in on an anti-China firewall, his sons are using their crypto companies to profit from workarounds that would offer access to banned Chinese AI models. First, the policy. Per Reuters, the State Department is preparing a document that will warn countries that working with China on AI initiatives is likely to get them cut off from America's efforts. The letter will reportedly go out to 35 signatories who joined the United States' AI Opportunity Statement in June of this year. Those countries will have the opportunity to join Pax Silica, a US-created framework for securing supply chains for AI -- but only if they choose not to join China's competing framework, the World Artificial Intelligence Cooperation Organization (WAICO). There are currently several overlapping members in these initiatives -- most notably Kazakhstan, which is rich with the minerals and materials needed to build AI infrastructure. Losing Kazakhstan would be a pretty major blow for the US, but the Trump administration is apparently willing to take the risk and issue an ultimatum as part of its ongoing crackdown on China. The administration has also been mulling ways to ban Chinese AI models from being used in the US, despite the urging of businesses that prefer those options because they're cheaper than American alternatives. But if the Trump administration drops the Silicon Curtain, the Trump family will find a way to lift the veil. Reuters reports that a Hong Kong-based startup called WorldClaw is offering access to Chinese models, including those subject to a Trumpian crackdown. One of the ways that people can pay WorldClaw to access those models is through USD1, the stablecoin owned and operated by World Liberty Financial, the cryptocurrency company that is, in part, owned and operated by the Trump sons, Eric and Don Jr. Per Reuters, World Liberty Financial doesn't own a part of WorldClaw, which gives enough plausible distance between the organizations to claim there's nothing shady going on. But there's no real way around the fact that the organization profits from every transaction involving USD1. And the Trump kids aren't exactly creating much distance. Both Don Jr. and Eric tweeted out posts promoting the fact that WorldClaw was accepting USD1 to access AI models, including those administration-maligned Chinese options. It's fitting that USD1 is positioned to be the official currency of profiting off a Trump policy, given that it was launched by the Trump family ahead of the administration loosening rules on stablecoins in the first place. If you ever wonder what the Trump administration is going to do, just take a look at what venture his front-running sons are supporting and work backwards.

Trump's World Liberty Financial backs AI platform with Chinese models

According to a Reuters review, 43 of the 90 models on WorldClaw's website -- just under half -- originated from Chinese technology companies, among them Alibaba, Baidu, Z.ai, DeepSeek, and Moonshot. WorldClaw also offers models from U.S. companies such as OpenAI and Anthropic. The platform accepts World Liberty's USD1 stablecoin as payment, and the Trump family, which owns 38% of World Liberty, earns revenue from the use of its crypto tokens. Among the Chinese models available are those from Alibaba and Baidu -- both companies the U.S. Department of Defense has placed on a list of Chinese military-affiliated firms, a status that bars the Pentagon from contracting with them. Z.ai, which was previously called Zhipu AI, is listed on the Department of Commerce's entity list -- a designation that sharply limits the firm's access to U.S. technology and means that American companies wishing to do business with it must seek an export license that is presumptively refused. The government listing states that Z.ai furthers China's military capabilities by developing and integrating advanced artificial intelligence, in ways the U.S. deems contrary to its national security and foreign policy interests. DeepSeek and Moonshot are among companies Trump administration officials have accused of stealing intellectual property from U.S. AI rivals.

Trump Family Crypto Firm Tied to Chinese AI Models US Government Called a Security Risk

WorldClaw accepts World Liberty's USD1 stablecoin as payment. President Donald Trump-backed World Liberty Financial is working with an AI company that offers models from Chinese tech firms his administration has flagged over national security concerns, Reuters reported Monday. According to Reuters, the companies are collaborating to expand the use of World Liberty's USD1 stablecoin, which WorldClaw accepts as payment for access to its AI models. World Liberty executive Ryan Fang also serves as an adviser to WorldClaw. Hong Kong-based WorldClaw offers access to dozens of AI models, with 43 of its 90 models developed by Chinese companies, including Alibaba, Baidu, and Z.ai. It also offers models from OpenAI and Anthropic. World Liberty spokesperson David Wachsman said WorldClaw is independent and noted that major U.S. firms also offer Chinese and American AI models. "This is a common and widely accepted approach," Wachsman told Reuters. In January 2025, Z.ai, formerly Zhipu AI, was added to the Commerce Department's Entity List, restricting its access to U.S. technology. In June, the Pentagon designated Alibaba and Baidu as "Chinese Military Companies Operating in the United States," barring the Defense Department from doing business with them. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," an Alibaba spokesperson told Reuters, calling the designation "arbitrary and capricious" and said it would sue to have it removed. It's unknown how much the Trump family has earned from WorldClaw or the financial terms between the companies. World Liberty executive Ryan Fang advises WorldClaw, while Donald Trump Jr. and Eric Trump have promoted it. The news comes as several Chinese AI firms available on WorldClaw have also been accused of distillation attacks on U.S. AI developers. In February, Anthropic accused DeepSeek, Moonshot AI, and MiniMax of using roughly 24,000 fraudulent accounts to generate more than 16 million Claude exchanges through model distillation, a technique in which one AI model learns from another's outputs. In June, Anthropic urged Congress to tighten export controls and penalize large-scale model extraction. "We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the administration to maintain American AI leadership," an Anthropic spokesperson told Decrypt.

Trump Crypto Firm Backs Venture Offering AI From Restricted Chinese Companies

BOSTON, Aug 17 (Reuters) - President Donald Trump-backed World Liberty Financial is collaborating with a Hong Kong-based venture offering artificial-intelligence models developed by Chinese companies the U.S. administration has ⁠flagged ⁠for national security concerns. WorldClaw, founded earlier this year, offers customers access to a suite of AI ⁠models and accepts World Liberty's crypto tokens as payment. The Trump family, through its ownership stake, earns revenue from the use of World Liberty's tokens. A Reuters review found that 43 of the 90 models available through WorldClaw's website, or nearly half, were developed by Alibaba, Baidu, Z.ai and other Chinese technology companies the Trump administration says pose risks to national security and intellectual property. WorldClaw also offers access to dozens of models from U.S. firms such as OpenAI and Anthropic. There's nothing illegal about World Liberty's collaboration with WorldClaw or with WorldClaw's relationships with the Chinese companies. And such Chinese models, which are typically less expensive, are gaining traction globally, including among U.S. tech companies. Still, seven experts on Chinese technology, trade and government ethics said the business collaboration -- and the potential profits for President Trump through World Liberty -- runs counter to his administration's stance towards Chinese tech companies. "As the U.S. government tries to respond to the rise and threat of Chinese AI, it seems hypocritical to go out through WorldClaw to use these tools from China to ⁠try and make a bunch of money," ⁠said Sam Bresnick, a fellow at Georgetown University's Center for Security and Emerging Technology. Reuters could not establish the details of World Liberty's financial arrangements with WorldClaw or how much money the Trump family has made from crypto payments on the platform. The president's two eldest sons have publicly promoted WorldClaw, and a World Liberty executive has worked as an advisor to WorldClaw. World Liberty makes money from the use of its USD1 stablecoin, including when WorldClaw users elect it as their mode of payment for access to AI models. Like other U.S. dollar-based stablecoins, USD1 is backed by traditional assets like U.S. Treasury securities so that it maintains a constant value. The Trumps are entitled to a percentage of the interest earned on those assets. White House spokesperson Anna Kelly said in a statement that "there are no conflicts of interest" in the relationship between World Liberty and WorldClaw and that "President Trump only acts in the best interests of the American public." David Wachsman, a spokesman for World Liberty, said WorldClaw was an independent company and noted that major U.S. firms offer AI from Chinese as well as American tech companies. "This is a common and widely accepted approach," he said in an email. A WorldClaw spokesperson said in a statement that the company "helps American ⁠AI ⁠companies reach international users" and that "making a model available does not ⁠constitute an endorsement of its developer." CONCERNS GROW OVER AI ARMS RACE The Chinese AI models offered by WorldClaw are generally legal for individuals and businesses to use in the United States. But some of the Chinese companies producing them face U.S. government restrictions because of national-security concerns. The AI models offered by WorldClaw include those made by tech giants Alibaba and Baidu, which the U.S. Department of Defense has designated as Chinese military-aligned companies. The designation ⁠blocks the Pentagon from doing business with these Chinese firms. Other models come from Z.ai, formerly Zhipu AI, which is on the Department of Commerce's "entity list," a designation which severely restricts access to U.S. technology. Any U.S. company looking to sell products or services to companies on the entity list would have to apply for an export license, with a presumption of denial. According to the government listing, Z.ai advances China's "military modernization through the development and integration of advanced artificial intelligence research," which is "contrary to the national security and foreign policy interests." Also on offer are models from DeepSeek and Moonshot, Chinese tech companies which Trump administration officials have recently accused of stealing intellectual property from U.S. AI rivals. Baidu, Z.ai, DeepSeek and Moonshot did not respond to requests for comment. Alibaba, Baidu and Z.ai have disputed the U.S. government's determination that they are aligned with the Chinese military, while the Chinese government has disputed the claims of technology theft. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," an Alibaba spokesperson said in an emailed statement. The spokesperson said the company's inclusion on ⁠the Pentagon's list was "arbitrary and capricious" and that Alibaba would sue to demand its removal. The Trump administration's response to fast-advancing Chinese AI models remains in flux. Early in his second term, Trump said it was important for the ⁠U.S. to beat China in technology and AI development. More recently, China and the U.S. have grown increasingly concerned about an AI arms race and tried to reduce tensions ahead of the planned summit next month between Trump and President Xi Jinping. "On one hand, people could say this is a China-hawk administration, and there is a tension with this type of business collaboration," said Peter Jeydel, an attorney who leads the sanctions and trade controls team at Troutman Pepper Locke in Washington. "On the other hand, it can be argued that this Trump presidency has been less aggressive in targeting Chinese companies in favor of a business-first approach. This collaboration would be consistent with that." The Departments of Commerce and Defense did not respond to questions from Reuters about WorldClaw. TRUMP SONS PROMOTE WORLDCLAW ON X Little is publicly known about WorldClaw. The company said through its spokesperson that it is an "independently owned and operated AI company" and its website says it is "not offered, managed, or controlled in any way" by World Liberty or its affiliates. But the two companies benefit from working together. The Trump family owns 38% of World Liberty and makes money through the sale or use of its crypto tokens, the $WLFI governance token and USD1 stablecoin. WorldClaw accepts USD1 as payment for services, among other forms of cryptocurrency. The WorldClaw spokesperson said that Ryan Fang, World Liberty's head of growth, has been a "helpful external adviser and supporter of WorldClaw, particularly regarding USD1 adoption, partnerships, and expanding global access to AI services." The spokesperson said Fang's role was "strictly advisory." The president's sons -- co-founders of World Liberty -- have promoted WorldClaw on social media platform X. Donald Trump Jr., said in May that he would meet winners of a WorldClaw contest at Mar-a-Lago, the family's club in Florida, while Eric Trump hailed the collaboration in a post as "the future of ⁠finance." So far, the Trump family's earnings from World Liberty token sales total more than $1.4 billion, the largest piece of the $2.3 billion the family has made from crypto, Reuters reported in June. While Trump sons Don Jr. and Eric operate the family business, known as the Trump Organization, the president retains ownership through a trust. CHINESE AI MAY PRESENT SECURITY RISKS WorldClaw's website says its WorldRouter tool, which functions as an aggregator providing access to various AI models, has more than 10,000 users, with more than 50 million requested tasks a day. WorldClaw is also developing an application for use of AI agents to perform personal tasks such as ordering food or summarizing emails, according to its website. Daniel Remler, a senior fellow at the Center for a New American Security and until recently a policy advisor at the U.S. State Department, said the Chinese AI models offered on WorldClaw could expose users to various risks: monitoring by the Chinese government, outputs that are censored, and the injection of malicious code that can hijack AI agents. The company says on its website that WorldClaw may share user inputs with the companies that provide its AI models. The WorldClaw spokesperson said that the company takes security seriously and applies privacy and security safeguards to its platform. (Reporting by Lawrence Delevingne; Editing by Paritosh Bansal and Suzanne Goldenberg)

Global Market: Trump-backed World Liberty partners with platform offering Chinese AI models

Trump-backed World Liberty Financial is collaborating with Hong Kong-based WorldClaw, which offers access to Chinese and US AI models. The partnership has drawn scrutiny because several Chinese developers face US security restrictions, while the Trump family holds a significant World Liberty stake and benefits financially from its cryptocurrency activities. US President Donald Trump-backed World Liberty Financial is collaborating with WorldClaw, a Hong Kong-based artificial intelligence platform that provides access to AI models developed by several Chinese technology companies facing U.S. national security scrutiny, according to Reuters. WorldClaw, founded earlier this year, allows users to access a range of AI models and accepts World Liberty's crypto tokens as payment. The Trump family owns a 38% stake in World Liberty and earns revenue from the company's cryptocurrency activities. US MarketsPowered By As on 18 Aug 2026, 01:30 AM IST S&P 500 Top Gainers Teradyne443.14(5.81%) Applied Materials535.31(5.55%) Western Digital536.01(5.35%) Quanta Services722.31(5.33%) Gainers" S&P 500 Top Losers Coterra Energy32.56(-8.62%) Charter Communications144.10(-6.59%) Constellation Brands130.56(-6.19%) Align Technology171.16(-5.60%) Losers" A Reuters review found that 43 of the 90 AI models available through WorldClaw were developed by Chinese technology companies including Alibaba, Baidu, Z.ai and others. The platform also provides access to models developed by U.S. companies such as OpenAI and Anthropic. The arrangement is not illegal, and Chinese AI models have been gaining traction globally, partly because they are often cheaper than comparable offerings from U.S. companies. However, experts in Chinese technology, trade and government ethics see a potential contradiction between the collaboration and the Trump administration's tougher stance toward certain Chinese technology firms. WorldClaw Offers Models From Chinese Firms Some of the Chinese AI models available through WorldClaw come from companies that have faced restrictions or scrutiny from the U.S. government. Alibaba and Baidu have been designated by the U.S. Department of Defense as Chinese military companies, a designation that limits Pentagon dealings with them. Z.ai, formerly known as Zhipu AI, is on the U.S. Commerce Department's entity list, which imposes significant restrictions on access to U.S. technology. WorldClaw also offers models from DeepSeek and Moonshot, Chinese technology companies that Trump administration officials have accused of taking intellectual property from U.S. AI rivals. Reuters reported that those companies did not respond to requests for comment. Alibaba has disputed its designation by the Pentagon, saying it is not a Chinese military company and challenging the U.S. government's determination. Trump Family Has Financial Interest The report by Reuters stated that it could not establish the precise financial arrangements between World Liberty and WorldClaw or determine how much the Trump family has earned from cryptocurrency payments made through the platform. WorldClaw accepts World Liberty's USD1 stablecoin as a payment option. USD1 is backed by traditional assets, including U.S. Treasury securities, allowing it to maintain a value linked to the dollar. World Liberty earns revenue from the assets backing the stablecoin, while the Trump family is entitled to a share of the interest generated, Reuters reported. World Liberty executive Ryan Fang has also worked as an external adviser to WorldClaw, particularly on USD1 adoption, partnerships and expanding access to AI services, according to Reuters. Trump's sons, Donald Trump Jr. and Eric Trump, have promoted WorldClaw on X. Reuters reported that Donald Trump Jr. promoted a WorldClaw contest whose winners were due to meet him at Mar-a-Lago, while Eric Trump described the collaboration as a significant development for the future of finance. Reuters reported in June that the Trump family's earnings from World Liberty token sales had exceeded $1.4 billion, making up the largest portion of more than $2.3 billion the family had earned from cryptocurrency activities. White House Defends Collaboration The White House said there was no conflict of interest involving the relationship between World Liberty and WorldClaw, Reuters reported. A World Liberty spokesperson told Reuters that WorldClaw is an independent company and noted that major U.S. technology companies also offer access to AI models developed by both Chinese and American firms. WorldClaw said in a statement reviewed by Reuters that it is independently owned and operated and is not managed or controlled by World Liberty or its affiliates. The company also said that making an AI model available on its platform does not amount to an endorsement of its developer. The U.S. Commerce and Defense departments did not respond to Reuters' questions about the WorldClaw relationship. Security Concerns Surround Chinese AI The collaboration comes as Washington and Beijing compete for leadership in artificial intelligence and seek to manage growing concerns about an AI arms race. Reuters reported that WorldClaw's WorldRouter service acts as an aggregator, providing users with access to multiple AI models. The company's website says it has more than 10,000 users and handles more than 50 million requested tasks each day. WorldClaw is also developing an AI-agent application designed to perform tasks such as ordering food and summarizing emails, according to its website. Experts cited by Reuters warned that Chinese AI models could expose users to risks including potential monitoring by Chinese authorities, censorship of AI outputs and malicious code that could compromise AI agents. WorldClaw's website says the company may share user inputs with the companies providing its AI models. The company told Reuters that it applies privacy and security safeguards to its platform. Tension Between Policy and Commercial Interests The WorldClaw relationship illustrates the growing tension between Washington's national security concerns over Chinese technology and the commercial appeal of increasingly competitive Chinese AI models. The Trump administration's approach to Chinese AI remains fluid. Trump has emphasized the need for the United States to maintain its technological lead over China, while U.S. and Chinese officials have also sought to reduce tensions ahead of a planned summit between Trump and Chinese President Xi Jinping. For World Liberty, WorldClaw offers another potential channel for adoption of its USD1 stablecoin, but the Trump family's financial interest in World Liberty means the partnership is likely to remain under scrutiny as the administration balances business interests with its broader national security strategy toward Chinese technology.

Trump crypto firm backs venture offering AI from restricted Chinese companies

BOSTON - U.S. President Donald Trump-backed World Liberty Financial is collaborating with a Hong Kong-based venture offering artificial intelligence models developed by Chinese companies the U.S. administration has flagged for national security concerns. WorldClaw, founded earlier this year, offers customers access to a suite of AI models and accepts World Liberty's crypto tokens as payment. The Trump family, through its ownership stake, earns revenue from the use of World Liberty's tokens. A review found that 43 of the 90 models available through WorldClaw's website -- nearly half -- were developed by Alibaba, Baidu, Z.ai and other Chinese technology companies the Trump administration says pose risks to national security and intellectual property. WorldClaw also offers access to dozens of models from U.S. firms such as OpenAI and Anthropic.

How Trump and his family are profiteering from Chinese AI which his administration labels as dangerous for the US

Amid increasing scrutiny, the Trump family's business dealings with Chinese AI companies come into the spotlight. The partnership between World Liberty Financial and WorldClaw, which facilitates access to Chinese artificial intelligence resources, ignites debates over national security. Although White House officials deny any conflicts of interest, analysts assert that this collaboration undermines the administration's position on China-related technology policies. The Trump family is facing scrutiny over a business partnership involving Chinese artificial intelligence, even as the Trump administration has warned about national-security risks linked to Chinese AI technology. World Liberty Financial, a crypto company backed by Trump and his family, is collaborating with Hong Kong-based WorldClaw, which offers access to AI models from Chinese companies including Alibaba, Baidu and Z.ai. Reuters reports that 43 of WorldClaw's 90 models come from Chinese firms flagged by the administration. The Trump family owns 38% of World Liberty and profits from its USD1 stablecoin transactions, raising questions about a potential conflict between business interests and national-security policy. The lineup reportedly also includes AI models from DeepSeek and Moonshot, two Chinese labs that US officials have accused of developing their systems using stolen American technology. At the same time, the platform also offers models from US-based companies such as OpenAI and Anthropic. Trump's sons, Donald Trump Jr. and Eric Trump, have also publicly endorsed WorldClaw, while World Liberty executive Ryan Fang has worked with the company as an adviser. World Liberty generates revenue when customers use its USD1 stablecoin to pay for services on WorldClaw, including access to various AI models, reported the outlet. Like other dollar-pegged stablecoins, USD1 is backed by traditional assets, including US Treasury securities, which are intended to help keep its value tied to the US dollar. The Trump family is entitled to receive a share of the interest generated by those underlying assets, meaning increased use of USD1 can potentially create additional income for the family. The media outlet was unable to determine the specific financial terms of World Liberty's relationship with WorldClaw or establish how much the Trump family has earned from cryptocurrency transactions conducted through the platform. White House spokesperson Anna Kelly rejected concerns about the relationship in a statement quoted by the news agency, saying there are 'no conflicts of interest' between World Liberty and WorldClaw. She added that President Trump's decisions are guided solely by what he believes is in the best interests of the American public. According to the news agency, there is currently no indication that World Liberty's partnership with WorldClaw, or WorldClaw's dealings with Chinese AI companies, violates the law. Chinese AI models are also gaining popularity worldwide, partly because they are generally less expensive, with some US technology companies increasingly using or evaluating them. Still, several experts in Chinese technology, trade and government ethics argued that the partnership, along with the potential financial gains for President Trump through World Liberty, appears to conflict with the administration's broader stance toward Chinese technology companies. David Wachsman, a spokesperson for World Liberty, said WorldClaw operates as an independent company. He also pointed out that several major US companies similarly provide access to AI models developed by both Chinese and American technology firms. "This is a common and widely accepted approach," Wachsman said in an email as quoted by the outlet. A WorldClaw spokesperson also said the company helps American AI firms reach users in international markets. The spokesperson also stressed that making an AI model available on its platform should not be viewed as an endorsement of the company or developer behind it.

Is this Why President Trump Will Only Bark at Chinese AI and Not Bite?

The Trump family's interests in stablecoin and the fact that WorldClaw is accepting it as currency for AI models is what caused this concern The Donald Trump administration has consistently painted China as its primary threat even while exhorting local AI giants to do what they can to ensure US hegemony in the space. However, in spite of several threats, the White House has only bared its fangs a few time at the Dragon without taking any action. Turns out that Trump's family is in bed with Chinese AI firms. A report from Reuters earlier this week claimed that the Trump-backed World Liberty Financial is in cahoots with an AI company that offers AI models from Chinese tech firms that the White House has flagged over national security concerns. On the other side of this spectrum comes the news that these same Chinese AI companies are looking to access advanced Nvidia compute through datacentres located in Southeast Asia in spite of Washington's restrictions on exports of these advanced microprocessors. "Despite U.S. restrictions on exporting the company's most advanced semiconductors, including GB300s, several Chinese firms have reportedly been able to access the chips' compute power via datacentres in Southeast Asia," says a report published by CNBC a day back. And all that the Trump administration says about these reports is to reiterate the fact that they have implemented "the most rigorous export control regime in modern history" to counter these threats and that it was committed to safeguarding America's national and economic security. So, where does that leave World Liberty Financial? The Reuters report says they are collaborating to use expand the use of the $1 Stablecoin, which WorldClaw now accepts as payment for access to its AI models. Incidentally, Hong Kong-based WorldClaw is an operating system and unified router for AI agents integrated with the World Liberty Financial ecosystem. A lesser known fact is that WorldClaw offers access to several AI models with 43 of its 90 models being developed by Chinese companies such as Alibaba, Baidu and Z.ai among others. Of course, it also provides models from OpenAI and Anthropic to customers for payments received via the Stablecoin option - a direct connection to Trump's family. Of course, as always the official response from World Liberty is that there's nothing wrong if WorldClaw, which is an independent company, offers Chinese and American AI models. "This is a common and widely accepted approach," David Wachsman was quoted as saying by Reuters. What they don't tell us is that while Z.ai was added to the US Commerce Department's Entity List in January of 2025, in June, the Pentagon designated Alibaba and Baidu as "Chinese Military companies operating in the United States," a tag that bans the US Department of Defence from doing any business with them. And yet, we find Trump breaking his own rules. Of course, some of the Chinese companies baulk at the manner in which US authorities have labelled them with Alibaba being vociferous in stating that they're not a military company and nor do they form a part of the military-civil fusion strategy in China. For the uninitiated, it may come as a surprise that while Donald Trump Jr. and Eric Trump have promoted the use of Stablecoin via WorldClaw. However, there is another connection in that World Liberty executive Ryan Fang also serves an advisor to WorldClaw, which incidentally has been accused of distillation attacks on developers working on AI solutions in the US. Readers would also recall that Anthropic has voiced its concerns repeatedly over distillation by Chinese AI model-makers like DeepSeek, Moonshot AI and MiniMax through setting up 24,000 fraudulent accounts that generated over 16 million Claude exchanges through the process. They even urged the US Congress to tighten export controls and penalise data extraction of this kind. What we saw instead from the Trump administration was an effort to ringfence US AI companies from directly launching their latest AI models without first having it cleared by the administration. Both Anthropic, with its Mythos 5, and OpenAI with its GPT-5.6 Sol were left huffing and puffing as the White House wanted a peek into its functioning as well as cybersecurity prowess.

Trump-Backed World Liberty Tied to 43 Chinese AI Models Flagged by US

The relationship is legal, but it raises questions as the Trump administration simultaneously pushes to reduce US reliance on Chinese AI technology. President Donald Trump-backed World Liberty Financial has developed commercial ties with an AI platform offering dozens of models from Chinese companies targeted by the US government over national security and technology concerns. A Reuters review found that 43 of the 90 AI models available through Hong Kong-based WorldClaw were developed by Chinese companies, including Alibaba, Baidu, and Z.ai. WorldClaw also offered models from DeepSeek and Moonshot, as well as from US providers such as OpenAI and Anthropic. The relationship puts World Liberty in an unusual position as Washington increases scrutiny of China's rapidly expanding AI sector. How World Liberty Makes Money From WorldClaw WorldClaw provides users with access to multiple AI models via its WorldRouter service. Its website currently advertises access to more than 300 models, including offerings from Alibaba, Z.ai, and Moonshot AI. The crypto connection comes through USD1 and WLFI. WorldClaw lets customers pay for some token packages using World Liberty's USD1 stablecoin, while larger packages can be unlocked by locking WLFI tokens. The platform states that it is independently operated and is not managed or controlled by World Liberty. Trump Family Role in World Liberty Reuters reported that the Trump family owns 38% of World Liberty and can earn money from the sale and use of its crypto products. World Liberty also earns from USD1, whose reserves include interest-bearing assets such as US Treasurys. The ties go beyond payments. World Liberty Head of Growth Ryan Fang has served as an external adviser to WorldClaw, particularly around USD1 adoption and partnerships. Donald Trump Jr. and Eric Trump have also publicly promoted WorldClaw. Chinese AI Firms Face US Scrutiny Several companies behind WorldClaw's Chinese models have faced action from the Trump administration agencies. The Pentagon has designated Alibaba and Baidu as Chinese military-aligned companies, restricting the Defense Department from doing business with them. Z.ai, formerly Zhipu AI, is on the Commerce Department's Entity List over allegations that its technology supports China's military modernization. US officials have separately accused companies, including DeepSeek and Moonshot, of improperly extracting intellectual property from American AI systems. China and the companies involved have disputed various US allegations. None of this makes WorldClaw's offering illegal. Reuters noted that Chinese AI models remain generally legal for American individuals and businesses to use. World Liberty said offering models from both Chinese and American developers is common across the industry. WorldClaw similarly said making a model available does not amount to endorsing its developer. Still, the arrangement creates a sharp contrast: the Trump administration is warning about Chinese AI risks, while a Trump family-backed crypto business can benefit financially when users access some of those same companies' models through WorldClaw.

World Liberty Financial: Trump crypto firm backs venture offering AI from restricted Chinese companies

WorldClaw, founded earlier this year, offers customers access to a suite of AI models and accepts World Liberty's crypto tokens as payment. The Trump family, through its ownership stake, earns revenue from the use of World Liberty's tokens. President Donald Trump-backed World Liberty Financial is collaborating with a Hong Kong-based venture offering artificial-intelligence models developed by Chinese companies the U.S. administration has flagged for national security concerns. WorldClaw, founded earlier this year, offers customers access to a suite of AI models and accepts World Liberty's crypto tokens as payment. The Trump family, through its ownership stake, earns revenue from the use of World Liberty's tokens. A Reuters review found that 43 of the 90 models available through WorldClaw's website, or nearly half, were developed by Alibaba, Baidu, Z.ai and other Chinese technology companies the Trump administration says pose risks to national security and intellectual property. WorldClaw also offers access to dozens of models from U.S. firms such as OpenAI and Anthropic. There's nothing illegal about World Liberty's collaboration with WorldClaw or with WorldClaw's relationships with the Chinese companies. And such Chinese models, which are typically less expensive, are gaining traction globally, including among U.S. tech companies. Still, seven experts on Chinese technology, trade and government ethics said the business collaboration - and the potential profits for President Trump through World Liberty - runs counter to his administration's stance towards Chinese tech companies. "As the U.S. government tries to respond to the rise and threat of Chinese AI, it seems hypocritical to go out through WorldClaw to use these tools from China to try and make a bunch of money," ⁠said Sam Bresnick, ⁠a fellow at Georgetown University's Center for Security and Emerging Technology. Reuters could not establish the details of World Liberty's financial arrangements with WorldClaw or how much money the Trump family has made from crypto payments on the platform. The president's two eldest sons have publicly promoted WorldClaw, and a World Liberty executive has worked as an advisor to WorldClaw. World Liberty makes money from the use of its USD1 stablecoin, including when WorldClaw users elect it as their mode of payment for access to AI models. Like other U.S. dollar-based stablecoins, USD1 is backed by traditional assets like U.S. Treasury securities so that it maintains a constant value. The Trumps are entitled to a percentage of the interest earned on those assets. White House spokesperson Anna Kelly said in a statement that "there are no conflicts of interest" in the relationship between World Liberty and WorldClaw and that "President Trump only acts in the best interests of the American public." David Wachsman, a spokesman for World Liberty, said WorldClaw was an independent company and noted that major U.S. firms offer AI from Chinese as well as American tech companies. "This is a common and widely accepted approach," he said in an email. A WorldClaw spokesperson said in a statement that the company "helps American AI companies reach international users" and that "making a model available does not constitute an endorsement of its developer." CONCERNS GROW OVER AI ARMS RACE The Chinese AI models offered by WorldClaw are generally legal for individuals and businesses to use in the United States. But some ⁠of the Chinese companies producing them face U.S. government restrictions because of national-security concerns. The AI models offered by WorldClaw include those made by tech giants Alibaba and Baidu, which the U.S. Department of Defense has designated as Chinese military-aligned companies. The designation blocks the Pentagon from doing business with these Chinese firms. Other models come from Z.ai, formerly Zhipu AI, which is on the Department of Commerce's "entity list," a designation which severely restricts access to U.S. technology. Any U.S. company looking to sell products or services to companies on ⁠the entity list would have to apply for an export license, with a presumption of denial. According to the government listing, Z.ai advances China's "military modernization through the development and integration of advanced artificial intelligence research," which is "contrary to the national security and foreign policy interests." Also on offer are models from DeepSeek and Moonshot, Chinese tech companies which Trump administration officials have recently accused of stealing intellectual property from U.S. AI rivals. Baidu, Z.ai, DeepSeek and Moonshot did not respond to requests for comment. Alibaba, Baidu and Z.ai have disputed the U.S. government's determination that they are aligned with the Chinese military, while the Chinese government has disputed the claims of technology theft. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," an Alibaba spokesperson said in an emailed statement. The spokesperson said the company's inclusion on the Pentagon's list was "arbitrary and capricious" and that Alibaba would sue to demand its removal. The Trump administration's response to fast-advancing Chinese AI models remains in flux. Early in his second term, Trump said it was important for the U.S. to beat China in technology and AI development. More recently, China and the U.S. have grown increasingly concerned about an AI arms race and tried to reduce tensions ahead of the planned summit next month between Trump and President Xi Jinping. "On one hand, people could say this is a China-hawk administration, and there is a tension with this type of business collaboration," said Peter Jeydel, an attorney who leads the sanctions and trade controls team at Troutman Pepper Locke in Washington. "On the other hand, it can be argued that this Trump presidency has been less aggressive in targeting Chinese companies in favor of a business-first approach. This collaboration would be consistent with that." The Departments of Commerce and Defense did not respond to questions from Reuters about WorldClaw. TRUMP SONS PROMOTE WORLDCLAW ON X Little is publicly known about WorldClaw. The company said through its spokesperson that it is an "independently owned and operated AI company" and its website says it is "not offered, managed, or controlled in any way" by World Liberty or its affiliates. But the two companies benefit from working together. The Trump family owns 38% of World Liberty and makes money ⁠through the sale or use of its crypto tokens, the $WLFI governance token and USD1 stablecoin. WorldClaw accepts USD1 as payment for services, among other forms of cryptocurrency. The WorldClaw spokesperson said that Ryan Fang, World Liberty's head of growth, has been a "helpful external adviser and supporter of WorldClaw, particularly regarding USD1 adoption, partnerships, and expanding global access to AI services." The spokesperson said Fang's role was "strictly advisory." The president's sons - co-founders of World Liberty - have promoted WorldClaw on social media platform X. Donald Trump Jr., said in May that he would meet winners of a WorldClaw contest at Mar-a-Lago, the family's club in Florida, while Eric Trump hailed the collaboration in a post as "the future of finance." So far, the Trump family's earnings from World Liberty token sales total more than $1.4 billion, the largest piece of the $2.3 billion the family has made from crypto, Reuters reported in June. While Trump sons Don Jr. and Eric operate the family business, known as the Trump Organization, the president retains ownership through a trust. CHINESE AI MAY PRESENT SECURITY RISKS WorldClaw's website says its WorldRouter tool, which functions as an aggregator providing access to various AI models, has more than 10,000 users, with more than 50 million requested tasks a day. WorldClaw is also developing an application for use of AI agents to perform personal tasks such as ordering food or summarizing emails, according to its website. Daniel Remler, a senior fellow at the Center for a New American Security and until recently a policy advisor at the U.S. State Department, said the Chinese AI models offered on WorldClaw could expose users to various risks: monitoring by the Chinese government, outputs that are censored, and the injection of malicious code that can hijack AI agents. The company says on its website that WorldClaw may share user inputs with the companies that provide its AI models. The WorldClaw spokesperson said that the company takes security seriously and applies privacy and security safeguards to its platform.

Trump crypto firm backs venture using AI from restricted Chinese companies

STORY: :: Examining the Trump family crypto firm's ties to restricted Chinese AI :: August 17, 2026 :: Lawrence Delevingne, Financial Enterprise Reporter "In May, I noticed a series of promotional posts on social media by World Liberty Financial, Eric Trump, Donald Trump Jr. about a venture I'd never heard of called WorldClaw. The brothers were promoting this new venture, which offered AI from many Chinese technology companies."// "And so I started to dig in to understand what was WorldClaw, where was it from, what exactly were they offering? What surprised me is that right out in the open, WorldClaw was working with a whole suite of Chinese AI models." // :: There is nothing illegal about World Liberty's collaboration with WorldClaw or with WorldClaw's relationships with the Chinese companies "It was interesting to me and surprising that the Trump administration, which has been so vocal about countering the threat of Chinese AI, that the Trump family in tension with that idea would be willing to have a business partner that was actively using and promoting these same AI tools from companies that the administration had flagged. Well, the White House said in a statement to Reuters that President Trump only acts in the best interests of the American people and that there are no conflicts of interest. The World Liberty statement about this matter basically said..." // "...it's common to use a whole range of models, including those from large U.S. companies like OpenAI and Anthropic, to often cheaper models from China." // "But it's clear that this is a very live conversation, both internally inside corporate America, and also the Trump administration about how to deal with a very fast moving landscape and evolution of Chinese technology, especially AI models."

Trump crypto firm backs venture offering AI from restricted Chinese companies

BOSTON, Aug 17 (Reuters) - President Donald Trump-backed World Liberty Financial is collaborating with a Hong Kong-based venture offering artificial-intelligence models developed by Chinese companies the U.S. administration has flagged for national security concerns. WorldClaw, founded earlier this year, offers customers access to a suite of AI models and accepts World Liberty's crypto tokens as payment. The Trump family, through its ownership stake, earns revenue from the use of World Liberty's tokens. A Reuters review found that 43 of the 90 models available through WorldClaw's website, or nearly half, were developed by Alibaba, Baidu, Z.ai and other Chinese technology companies the Trump administration says pose risks to national security and intellectual property. WorldClaw also offers access to dozens of models from U.S. firms such as OpenAI and Anthropic. There's nothing illegal about World Liberty's collaboration with WorldClaw or with WorldClaw's relationships with the Chinese companies. And such Chinese models, which are typically less expensive, are gaining traction globally, including among U.S. tech companies. Still, seven experts on Chinese technology, trade and government ethics said the business collaboration -- and the potential profits for President Trump through World Liberty -- runs counter to his administration's stance towards Chinese tech companies. "As the U.S. government tries to respond to the rise and threat of Chinese AI, it seems hypocritical to go out through WorldClaw to use these tools from China to try and make a bunch of money," said Sam Bresnick, a fellow at Georgetown University's Center for Security and Emerging Technology. Reuters could not establish the details of World Liberty's financial arrangements with WorldClaw or how much money the Trump family has made from crypto payments on the platform. The president's two eldest sons have publicly promoted WorldClaw, and a World Liberty executive has worked as an advisor to WorldClaw. World Liberty makes money from the use of its USD1 stablecoin, including when WorldClaw users elect it as their mode of payment for access to AI models. Like other U.S. dollar-based stablecoins, USD1 is backed by traditional assets like U.S. Treasury securities so that it maintains a constant value. The Trumps are entitled to a percentage of the interest earned on those assets. White House spokesperson Anna Kelly said in a statement that "there are no conflicts of interest" in the relationship between World Liberty and WorldClaw and that "President Trump only acts in the best interests of the American public." David Wachsman, a spokesman for World Liberty, said WorldClaw was an independent company and noted that major U.S. firms offer AI from Chinese as well as American tech companies. "This is a common and widely accepted approach," he said in an email. A WorldClaw spokesperson said in a statement that the company "helps American AI companies reach international users" and that "making a model available does not constitute an endorsement of its developer." CONCERNS GROW OVER AI ARMS RACE The Chinese AI models offered by WorldClaw are generally legal for individuals and businesses to use in the United States. But some of the Chinese companies producing them face U.S. government restrictions because of national-security concerns. The AI models offered by WorldClaw include those made by tech giants Alibaba and Baidu, which the U.S. Department of Defense has designated as Chinese military-aligned companies. The designation blocks the Pentagon from doing business with these Chinese firms. Other models come from Z.ai, formerly Zhipu AI, which is on the Department of Commerce's "entity list," a designation which severely restricts access to U.S. technology. Any U.S. company looking to sell products or services to companies on the entity list would have to apply for an export license, with a presumption of denial. According to the government listing, Z.ai advances China's "military modernization through the development and integration of advanced artificial intelligence research," which is "contrary to the national security and foreign policy interests." Also on offer are models from DeepSeek and Moonshot, Chinese tech companies which Trump administration officials have recently accused of stealing intellectual property from U.S. AI rivals. Baidu, Z.ai, DeepSeek and Moonshot did not respond to requests for comment. Alibaba, Baidu and Z.ai have disputed the U.S. government's determination that they are aligned with the Chinese military, while the Chinese government has disputed the claims of technology theft. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," an Alibaba spokesperson said in an emailed statement. The spokesperson said the company's inclusion on the Pentagon's list was "arbitrary and capricious" and that Alibaba would sue to demand its removal. The Trump administration's response to fast-advancing Chinese AI models remains in flux. Early in his second term, Trump said it was important for the U.S. to beat China in technology and AI development. More recently, China and the U.S. have grown increasingly concerned about an AI arms race and tried to reduce tensions ahead of the planned summit next month between Trump and President Xi Jinping. "On one hand, people could say this is a China-hawk administration, and there is a tension with this type of business collaboration," said Peter Jeydel, an attorney who leads the sanctions and trade controls team at Troutman Pepper Locke in Washington. "On the other hand, it can be argued that this Trump presidency has been less aggressive in targeting Chinese companies in favor of a business-first approach. This collaboration would be consistent with that." The Departments of Commerce and Defense did not respond to questions from Reuters about WorldClaw. TRUMP SONS PROMOTE WORLDCLAW ON X Little is publicly known about WorldClaw. The company said through its spokesperson that it is an "independently owned and operated AI company" and its website says it is "not offered, managed, or controlled in any way" by World Liberty or its affiliates. But the two companies benefit from working together. The Trump family owns 38% of World Liberty and makes money through the sale or use of its crypto tokens, the $WLFI governance token and USD1 stablecoin. WorldClaw accepts USD1 as payment for services, among other forms of cryptocurrency. The WorldClaw spokesperson said that Ryan Fang, World Liberty's head of growth, has been a "helpful external adviser and supporter of WorldClaw, particularly regarding USD1 adoption, partnerships, and expanding global access to AI services." The spokesperson said Fang's role was "strictly advisory." The president's sons -- co-founders of World Liberty -- have promoted WorldClaw on social media platform X. Donald Trump Jr., said in May that he would meet winners of a WorldClaw contest at Mar-a-Lago, the family's club in Florida, while Eric Trump hailed the collaboration in a post as "the future of finance." So far, the Trump family's earnings from World Liberty token sales total more than $1.4 billion, the largest piece of the $2.3 billion the family has made from crypto, Reuters reported in June. While Trump sons Don Jr. and Eric operate the family business, known as the Trump Organization, the president retains ownership through a trust. CHINESE AI MAY PRESENT SECURITY RISKS WorldClaw's website says its WorldRouter tool, which functions as an aggregator providing access to various AI models, has more than 10,000 users, with more than 50 million requested tasks a day. WorldClaw is also developing an application for use of AI agents to perform personal tasks such as ordering food or summarizing emails, according to its website. Daniel Remler, a senior fellow at the Center for a New American Security and until recently a policy advisor at the U.S. State Department, said the Chinese AI models offered on WorldClaw could expose users to various risks: monitoring by the Chinese government, outputs that are censored, and the injection of malicious code that can hijack AI agents. The company says on its website that WorldClaw may share user inputs with the companies that provide its AI models. The WorldClaw spokesperson said that the company takes security seriously and applies privacy and security safeguards to its platform. (Reporting by Lawrence Delevingne; Editing by Paritosh Bansal and Suzanne Goldenberg)