AXIOS (Madison Mills) - White House draws new AI line on China
The Trump administration this week staked out a new position that could reshape its approach to AI policy, accusing Chinese companies of stealing U.S. technology even as it defends open AI development. Why it matters: That distinction could become the foundation for U.S. action against Chinese AI companies without broadly restricting the open-weight models that businesses, researchers and startups increasingly rely on. Driving the news: The Trump administration is backing open-weight models while accusing China's Moonshot of using distillation — the process of training a smaller AI model using the outputs of a larger model — to copy Anthropic's Fable model. - "Legitimate AI distillation used to create smaller, more efficient models…