Xi Jinping used his first appearance at China's World AI Conference to promote a vision of low-cost, broadly accessible AI and call for international cooperation rather than technological rivalry. "AI development should not be a solo performance by a single country, but a symphony of international cooperation," he said. Bloomberg reports: His presence at the gathering, attended by scores of tech and government leaders, conveys a potent signal of China's ambitions to dominate a technological sphere with the potential to revolutionize industry and economies -- an effort that's shot to the top of the nation's agenda. Chinese models are winning over companies worldwide, with their share of US firms' AI usage nearing a record 60% on the popular marketplace OpenRouter. Behind the rhetoric, Beijing is grappling with the balance between openness and national security as models grow more capable. Chinese officials recently discussed with companies including Alibaba -- developer of the popular Qwen models -- how to mitigate the security risks posed by their increasingly powerful models, people familiar with the matter said. The talks are early, with no enforcement planned, but restricting foreign access to top models was among the options raised, the people said. Reuters previously reported that Beijing was weighing curbs on overseas access. Earlier today, the Beijing-based AI company "Moonshot" released a massive new model that reset the AI race overnight, immediately vaulting into the top tier of global AI, beating Anthropic's Fable 5 and OpenAI's GPT-5.6 Sol in front-end coding tests.

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In March, Anthropic's Claude "quietly deployed software to spy on China-based customers," reports the Washington Post — apparently to unmask Chinese rivals "suspected of hijacking its technology to make their own AI tools smarter." Last week Anthropic removed the spyware "after a software developer revealed its existence and privacy advocates criticized Anthropic, saying it had surveilled its own users." Anthropic's tracking code was designed in part to catch Chinese firms "distilling" its AI models, a technique that involves pressing a large, expensive AI system to serve as a tutor to a smaller, cheaper one. Asking the larger system huge numbers of questions — hundreds of thousands or more — generates responses that can be used to upgrade the power of the smaller one on the cheap. Distillation isn't illegal, and it has been used for years in the AI industry. But distillation without permission is against AI companies' rules, and, used effectively, is giving Chinese AI companies a major leg up, American AI companies say... Anthropic and ChatGPT-maker OpenAI have both accused Chinese AI companies of using this technique to build copycat AI models of their own. In a May blog post, Anthropic said that Chinese companies' use of distillation, along with evading U.S. export controls on high-end computer chips, has allowed them to "trail closely" behind U.S. models. But if these techniques can be blocked, it might be possible for the United States to "lock in a 12-24 month lead" on Chinese capabilities, the company said... This month, Anthropic said in a letter to U.S. senators that was obtained by The Post that it uncovered a campaign in which Chinese tech giant Alibaba's Qwen AI team used roughly 25,000 fraudulent accounts to generate more than 28.8 million exchanges with Claude to improve its own technology. In February, Anthropic made similar accusations against the Chinese firms Deepseek, Moonshot and MiniMax and said the campaigns were "growing in intensity and sophistication...." Anthropic and OpenAI have appealed to the U.S. government, arguing that distillation amounts to intellectual property theft that harms the U.S. in the geopolitical AI contest.... That Chinese AI labs are using U.S. models to improve their own technology appears beyond dispute. In a February 2025 study, researchers from China's Peking University and the state-funded Chinese Academy of Sciences developed methods to detect signs of distillation in leading large language models. They concluded that, with the exception of ByteDance's Doubao, most domestic models they tested showed substantial evidence of distillation, mostly drawing from U.S. models... In one set of intensive tests, a Qwen model misidentified itself as Claude nearly a third of the time, the Chinese researchers found. U.S. firms have also used distillation to piggyback on AI systems made by others. In 2024, OpenAI released a tool to make it easier for customers to distill its own models and produce data sets for AI training. SpaceX founder Elon Musk said in court testimony in May that his AI company xAI used distillation to train its models and that the technique is common throughout the industry. The article also notes that Anthropic "said it has banned nearly 700,000 accounts that were using Claude in China." But the article includes this quote from Kyle Chan, a fellow at the Washington-based Brookings Institution's China Center. "Anthropic's framing is that this is a geopolitical contest for basically the future of the world and freedom and democracy. It's that this is not just undercutting the U.S. commercially, but undercutting American strategic advantage in the most powerful technology we know today."

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Nobel-winning chemist Omar Yaghi is leaving UC Berkeley for China's Tsinghua University, where he will lead a new AI institute focused on accelerating the discovery of advanced materials. "Last week, Tsinghua University in Beijing welcomed Dr. Yaghi in an appointment ceremony, calling him one of the world's foremost chemists," reports The New York Times. "The university said he saw his new post as an opportunity 'not to slow down, not to repeat what has already been done, but to do science with more energy, more intensity, and more ambition than ever before.'" From the report: Dr. Yaghi was born in Amman, Jordan, to Palestinian refugees whose one-room home lacked electricity and running water. Early on, he became fascinated with a schoolbook's depiction of atomic building blocks. When he was 15, his father, a butcher, sent him to the United States. Last year, before flying to Stockholm to receive his Nobel Prize, Dr. Yaghi in an interview with The New York Times voiced concern about Mr. Trump's immigration policies, saying that they endanger the nation's system of universities, companies and governments that promote scientific excellence. "I think it's regrettable," he said of Mr. Trump's nationalism. "We have to know that people coming from different backgrounds improve the level for everybody involved," he added. "That's an amazing story. Great thinkers can improve not only the U.S. but the world." Dr. Yaghi joined the University of California, Berkeley, in 2012, and while there earned many awards for his scientific advances. He received his Nobel Prize for helping discover a world of chemistry in which molecular building blocks are assembled into structures that possess vast internal surface areas -- the largest of any known substance. His porous structures can act like sponges that readily absorb, store and release gases and vapors. He named them metal-organic frameworks. The metal atoms form an adjustable framework that can hold chemicals associated with life -- carbon atoms in particular. While deeply theoretical, the frameworks are so radical, innovative and flexible in nature that materials experts and companies foresee many commercial uses for them. The frameworks can, for instance, harvest water from desert air. In 2018, Dr. Yaghi's students at Berkeley tested the idea in the Mojave Desert in California, finding that a small passive harvester could each day produce nearly three cups of pure, drinkable water. The device is now nearing commercialization. In the interview with The Times, Dr. Yaghi credited the invention to his boyhood efforts to secure water for his family. The municipal pipes worked for only a few hours every week or two. That hardship, he added, shows how the diverse experiences of emigres can lead to unexpected breakthroughs. Dr. Yaghi has longstanding ties with Tsinghua University. In 2022, the Beijing school appointed him as an honorary professor and in that role he closely followed its work in chemistry, materials science and related disciplines. Now, on joining Tsinghua full time, Dr. Yaghi is being named as the head of a new A.I. institute for science research that will focus on the design and synthesis of new materials. Its underlying aim, the university said, is to "overcome the efficiency bottlenecks of traditional trial-and-error approaches" and shorten the usual cycles of discovery.

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An anonymous reader quotes a report from Reuters: Chinese startup DeepSeek is developing its own AI chip, according to three people familiar with the matter, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models. The chip is designed for inference -- the stage of AI computing in which a trained model generates responses for users -- rather than for training new models, the sources said. If successful, DeepSeek's expansion into semiconductor development would mark a major strategic shift for a company widely hailed in China as the country's AI champion, potentially adding to challenges faced by Chinese tech giant Huawei.

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