OpenAI and Anthropic lobbied Washington over China’s open Kimi model, stoking a familiar freakout

The release of Moonshot AI’s Kimi model didn’t just spark another round of social media hand-wringing. It sent OpenAI and Anthropic straight to regulators in Washington, D.C., lobbying behind the scenes with fresh warnings about open Chinese AI. The episode feels like déjà vu, a direct echo of the DeepSeek panic, where a Chinese model posted competitive benchmark scores and parts of Silicon Valley promptly lost their collective mind.

Sean O’Kane nailed the pattern on TechCrunch’s Equity podcast: “We’re seeing repeats of prior freakouts,” with everyone “expecting that something is going to arrive and blow everything else away.” The evidence this time was thin. People gawked at Kimi’s ability to whip up a graphical imitation of macOS in 30 minutes, but as Sean pointed out, “it’s not an OS.” A week later, the existential dread has mostly evaporated.

Kirsten Korosec pointed to a deeper story by reporter Tim Fernholz, which diagnoses the real driver behind the American psychosis: protectionism disguised as a safety debate. Sure, there are stated concerns about bias and security risks in open-weight Chinese models. But the louder, more honest question, as Kirsten put it, is whether the goal is to “ensure that Americans win the AI race, or are we ensuring that certain frontier labs do better than others?” Anthony Ha compared the hysteria directly to the TikTok panic, noting that slapping the “China” label on any tech discussion instantly amps up the fear to a point where nuance goes out the window.

This manufactured urgency becomes a convenient cudgel for companies like OpenAI to bulldoze regulation and push proprietary models as the only responsible path forward. Former AI czar David Sacks was busy on X shouting about data center opposition and overregulation, using the China threat to argue for the deregulatory agenda he already wanted. The playbook is transparent: if China is always on the verge of winning, then any policy you dislike becomes a national security risk.