Trump-backed crypto firm partners with Chinese AI venture

Trump-backed World Liberty Financial is collaborating with a Hong Kong venture offering AI models built by Chinese companies the administration has flagged as national security risks.

A review of WorldClaw's website found 43 of its 90 available models, nearly half, came from Alibaba, Baidu, Z.ai and other Chinese firms. The Pentagon has designated Alibaba and Baidu as Chinese military-aligned companies, barring the Defense Department from doing business with them. Z.ai sits on the Commerce Department's entity list, which severely restricts access to U.S. technology on grounds it advances China's military modernization. WorldClaw also offers models from DeepSeek and Moonshot, firms administration officials have accused of stealing American intellectual property. All dispute the designations, with Alibaba calling its listing arbitrary and capricious and vowing to sue.

The Trump family owns 38% of World Liberty and earns revenue when WorldClaw customers pay with its USD1 stablecoin. Donald Trump Jr. and Eric Trump have both promoted WorldClaw on X. Family earnings from World Liberty tokens exceed $1.4 billion.

Nothing about the arrangement is illegal, and Chinese models are gaining traction globally on price. But seven experts on Chinese technology and government ethics said the collaboration cuts against the administration's own posture. White House spokesperson Anna Kelly said there are no conflicts of interest.