{"id":33492,"date":"2026-07-28T20:56:57","date_gmt":"2026-07-28T18:56:57","guid":{"rendered":"https:\/\/www.digital-chiefs.de\/?p=33492"},"modified":"2026-07-28T21:23:16","modified_gmt":"2026-07-28T19:23:16","slug":"washington-decides-which-ai-is-allowed-to-run-here","status":"publish","type":"post","link":"https:\/\/www.digital-chiefs.de\/en\/washington-decides-which-ai-is-allowed-to-run-here\/","title":{"rendered":"Washington decides which AI is allowed to run here"},"content":{"rendered":"<p style=\"display:inline-block;background:#d65663;color:#fff;padding:4px 14px;border-radius:20px;font-size:0.85em;margin-bottom:18px;\">6 Min. read time<\/p>\n<p><strong>In just eight days, Washington has shifted the dispute over Chinese AI models from analysis to the executive office. Scott Bessent mentions sanctions, Michael Kratsios levels a specific distillation accusation, and over a hundred companies sign a counter-letter. For Europe\u2019s three-year framework contract, the clause that mitigates platform failure is what counts.<\/strong><\/p>\n<div style=\"background:#f6f1e6;border-left:4px solid #d65663;border-radius:0 8px 8px 0;padding:22px 26px;margin:28px 0 34px;\">\n<p style=\"margin:0 0 14px 0;font-size:0.76em;font-weight:700;text-transform:uppercase;letter-spacing:0.16em;color:#c0414e;\">Key Takeaways<\/p>\n<ul style=\"margin:0;padding-left:22px;color:#23303f;line-height:1.6;\">\n<li style=\"margin-bottom:12px;\"><strong style=\"color:#0d1b2a;\">Supply risk in access.<\/strong> Updates, support, and API pathways via US clouds could break faster than any local file usage ban would take effect.<\/li>\n<li style=\"margin-bottom:12px;\"><strong style=\"color:#0d1b2a;\">Export controls target differently.<\/strong> The existing rule governs the export of unpublished US model weights-not the import of open Chinese models.<\/li>\n<li style=\"margin-bottom:12px;\"><strong style=\"color:#0d1b2a;\">Contractual gap in procurement.<\/strong> EU standard clauses address AI Act compliance but cover neither sanction triggers, substitution rights, nor migration costs.<\/li>\n<\/ul>\n<\/div>\n<p style=\"font-size:0.88em;color:#666;margin:20px 0 32px 0;border-top:1px solid #e5e5e5;border-bottom:1px solid #e5e5e5;padding:10px 0;\"><span style=\"color:#0a1e3d;font-weight:700;text-transform:uppercase;font-size:0.72em;letter-spacing:0.14em;margin-right:14px;\">Related<\/span><a href=\"https:\/\/www.digital-chiefs.de\/en\/open-weight-ball-dean-roof\/\" style=\"color:#333;text-decoration:underline;\">How to slow open source without banning it<\/a>&nbsp;&nbsp;<span style=\"color:#ccc;\">\/<\/span>&nbsp;&nbsp;Kimi halts subscriptions: 7 checks for AI capex<\/p>\n<h2 style=\"margin-top:32px;margin-bottom:16px;\">Eight days shift the landscape<\/h2>\n<p>On July 21, US Treasury advisor Scott Bessent uses the word \u201csanctions\u201d in a Fox Business interview. The government supports open models, he says. But when it comes to intellectual property theft, that support ends. He calls \u201cdistillation\u201d the technical term he equates with theft. Watermarks from US language models are found in many Chinese models, he claims.<\/p>\n<p>The next day, Michael Kratsios, director of the White House Office of Science and Technology Policy, takes to X publicly. He accuses Moonshot AI of distilling Anthropic\u2019s Fable to develop K3. The lab allegedly built an internal platform to distill US models at scale and covertly, rapidly switching access routes. Legitimate distillation, he says, is valuable-\u201clarge-scale, covert industrial distillation\u201d is unacceptable. No public evidence has been presented.<\/p>\n<p><strong>What is distillation?<\/strong> A process where a smaller model is trained on the outputs of a larger one, adopting its behavior without access to the original training data. In research, this is common practice for efficiency. It becomes contentious when a commercial model is systematically and covertly scraped: then the question arises whether intellectual property has been siphoned off. This is precisely the line between allegation and proof in the current conflict.<\/p>\n<p>On July 24, Nvidia CEO Jensen Huang publishes the letter <a href=\"https:\/\/images.nvidia.com\/pdf\/Open-Weights-and-American-AI-Leadership.pdf\">Open Weights and American AI Leadership<\/a>. Around 25 initial signatories join, including Nvidia, Microsoft, Meta, IBM, Dell, Palantir, Mistral, the Linux Foundation, Hugging Face, Andreessen Horowitz, and Y Combinator. Policymakers should keep the field of leading models diverse and avoid premature restrictions on open models. Concerns about illicit extraction belong in targeted legal and commercial frameworks-not blanket bans.<\/p>\n<p>By July 25, the number of signatories doubles to 50. OpenAI and Google join. Amazon and Anthropic are absent at this point, according to Forbes. On July 27, AWS CEO Matt Garman announces Amazon\u2019s participation on X. The same day, Anthropic CEO Dario Amodei publishes a blog post outlining the company\u2019s stance. The current <a href=\"https:\/\/www.microsoft.com\/en-us\/corporate-responsibility\/topics\/open-weight\/\">signatory list at Microsoft<\/a> now includes over a hundred companies, such as SAP and Siemens. Anthropic remains absent.<\/p>\n<h2 style=\"margin-top:32px;margin-bottom:16px;\">Amodei separates origin from openness<\/h2>\n<p>Those who judge Anthropic solely by its missing signature are misreading the conflict. In his <a href=\"https:\/\/www.anthropic.com\/news\/position-open-weights-models\">blog post from July 27<\/a>, Amodei states explicitly: \u201cAnthropic has never advocated for a ban on open-weights models.\u201d His primary concern is the risk of authoritarian governments building models more powerful than those developed in the U.S. Such systems could cement long-term military superiority or enable deep repression within their own borders. He names the Chinese Communist Party as the most capable threat-but not the only one.<\/p>\n<p>Whether these models are released with open weights is irrelevant. Equally irrelevant is whether U.S. companies use them. The concern centers on the models\u2019 origin, not their openness. And that shifts the entire narrative.<\/p>\n<p>A European procurement team no longer categorizes \u201copen\u201d as inherently risky. Instead, models flagged by Washington as problematic appear far more dangerous. Closed U.S. frontier systems and Western open models occupy a different risk category than Chinese open systems. The headlines frame this as a debate over open source. But the real battle in the corridors of power is about origin and control.<\/p>\n<div style=\"background:#0a1e3d;color:#fff;text-align:center;padding:40px 24px;margin:32px 0;border-radius:8px;\">\n<div style=\"font-size:2.4em;font-weight:800;color:#d65663;letter-spacing:-0.03em;line-height:1.1;\">over 100<\/div>\n<div style=\"font-size:1em;color:rgba(255,255,255,0.88);margin-top:12px;max-width:540px;margin-left:auto;margin-right:auto;line-height:1.5;\">Signatories demand targeted regulations instead of blanket restrictions on open models. Anthropic remains absent, justifying its concerns with the origin of models-not their openness.<\/div>\n<div style=\"font-size:0.78em;color:rgba(255,255,255,0.5);margin-top:12px;\">Analysis by Digital Chiefs<\/div>\n<\/div>\n<h2 style=\"margin-top:32px;margin-bottom:16px;\">Washington holds different levers than expected<\/h2>\n<p>The existing export controls already target model weights-but from the opposite angle. The BIS <a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/01\/15\/2025-00636\/framework-for-artificial-intelligence-diffusion\">Framework for Artificial Intelligence Diffusion<\/a>, issued on January 15, 2025, introduced ECCN 4E091 for unpublished weights of advanced models exceeding 10<sup>26<\/sup> training operations. Published weights are explicitly exempt. The regime regulates the export of U.S. frontier weights abroad-but not the import of Chinese open models.<\/p>\n<p>Against a lab, tools like the Entity List, end-use controls, or sanctions under IEEPA and OFAC come into play. Bessent only mentioned the word \u201csanction.\u201d Which instrument he meant remained unclear. No listing has occurred to date. For a European company, a listing doesn\u2019t automatically ban the use of already downloaded weights. The critical points become payments, licenses, support contracts, and access via U.S. cloud APIs.<\/p>\n<p>Secondary effects kick in before primary law. Banks, payment providers, and cloud services with U.S. ties steer clear of listed companies long before any European regulation exists. The fastest way to remove a model from the European market is through the platform. Delisting from Azure, Bedrock, or Vertex cuts off API access within days.<\/p>\n<p>Self-hosted copies remain technically operational but lose updates, security patches, and support. Kaspersky and Huawei provide the blueprint: access via American platforms collapses while the software continues to exist. No robust legal opinion currently prohibits a European company from running local inference solely due to looming U.S. sanctions. Nor is there a guarantee for individual cases. The risk shifts from the file itself to updates, support, licensing, and payments.<\/p>\n<div style=\"overflow-x:auto;-webkit-overflow-scrolling:touch;margin:16px 0 32px 0;\">\n<table style=\"width:100%;min-width:560px;border-collapse:collapse;font-size:0.95em;\">\n<thead>\n<tr style=\"background:#0a1e3d;color:#fff;\">\n<th style=\"padding:12px 16px;text-align:left;border:1px solid #0a1e3d;\">Model Class<\/th>\n<th style=\"padding:12px 16px;text-align:left;border:1px solid #0a1e3d;\">What the Dispute Does to It<\/th>\n<th style=\"padding:12px 16px;text-align:left;border:1px solid #0a1e3d;\">What Your Contract Must Include<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\"><strong>Chinese Open Models<\/strong><\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\">Highest political risk: platform delisting, payment freezes, and support termination hit before file-based restrictions.<\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;color:#0a1e3d;font-weight:600;\">Exit timeline, substitution path, artifact export, and migration cost clauses.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\"><strong>Western Open Models<\/strong><\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\">Industry letters provide political cover. Operational risk remains from deprecation and provider switches.<\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;color:#0a1e3d;font-weight:600;\">Deprecation notice of 60\u201390 days standard, up to 180 days recommended, plus portability of your artifacts.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\"><strong>Closed U.S. Frontier Models<\/strong><\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\">Lower sanctions risk for the model itself. Dependency on APIs, pricing, and product lines stays high.<\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;color:#0a1e3d;font-weight:600;\">Transition assistance, price path, and switching rights without residual term penalties.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\"><strong>European Providers<\/strong><\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;\">Fewer direct U.S. levers tied to origin. Platform dependency and AI Act compliance burdens remain.<\/td>\n<td style=\"padding:12px 16px;border:1px solid #ddd;color:#0a1e3d;font-weight:600;\">Documentation requirements, origin disclosure, and exit support if regulations are breached.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2 style=\"margin-top:32px;margin-bottom:16px;\">Seven clauses that absorb the failure<\/h2>\n<p>A European company is about to deploy a model into production under a three-year framework agreement. Which part of the dispute this decision affects is clarified through clause negotiations. The <a href=\"https:\/\/public-buyers-community.ec.europa.eu\/communities\/procurement-ai\/resources\/updated-eu-ai-model-contractual-clauses\">EU Model Contractual AI Clauses<\/a> (MCC-AI) aim to ensure AI Act compliance, supplier obligations, data rights, and audits. However, they don\u2019t cover model failures forced by geopolitical events. Those who believe these standard clauses resolve the issue have addressed the wrong gap. The following checklist is negotiation material for procurement teams-but it doesn\u2019t replace case-by-case legal review.<\/p>\n<ol style=\"padding-left:22px;line-height:1.7;\">\n<li style=\"margin-bottom:14px;\"><strong>Notice period for model deprecation.<\/strong> Enterprise contracts typically allow 60 to 90 days. Practitioners recommend up to 180 days, plus transition assistance and partial refunds-so Promise Legal noted in July 2026. In negotiations, this figure often stalls due to providers\u2019 interest in quickly phasing out product lines.<\/li>\n<li style=\"margin-bottom:14px;\"><strong>Change-of-law with sanctions trigger.<\/strong> Change-of-law clauses are standard. Whether US sanctions and export controls qualify as triggers remains negotiable-and rarely appears in off-the-shelf templates. Without explicit mention, the failure shifts to force majeure, absolving the provider of responsibility.<\/li>\n<li style=\"margin-bottom:14px;\"><strong>Substitution right without penalty.<\/strong> Procurement needs the right to switch to an equivalent model without penalties for the remaining term or early termination fees. Providers often resist this with narrow equivalence definitions and lengthy approval processes.<\/li>\n<li style=\"margin-bottom:14px;\"><strong>Portability of your own artifacts.<\/strong> Provider model weights are almost never transferable. What *must* be transferable are workflows, guardrails, configurations, eval harnesses, fine-tunes, embeddings, and prompts-as Morgan Lewis confirmed in February 2026. Without this list, all that remains after a failure is the memory of the setup effort.<\/li>\n<li style=\"margin-bottom:14px;\"><strong>Disclosure of model origin.<\/strong> The contract should require disclosure of the model\u2019s origin, including updates if the lab, training data, or licensing chain changes significantly. Without this obligation, businesses only discover the altered risk profile when the model is delisted.<\/li>\n<li style=\"margin-bottom:14px;\"><strong>Exit support with defined timeline.<\/strong> Continued operation-or at least read access-keeps processes running while a replacement scales up. A realistic negotiation target is six to twelve months, based on the time needed for a full model transition and revalidation. Providers often accept this only with short timelines and strict usage restrictions.<\/li>\n<li style=\"margin-bottom:14px;\"><strong>Migration cost allocation.<\/strong> In cases of regulatory failure, force majeure typically favors the provider. No uniform market standard exists for cost-sharing, so procurement must set the terms: a capped amount or fixed percentage of migration costs, embedded in the contract-not left to goodwill. Those who leave this open bear the full burden when a mid-rollout rebuild becomes necessary.<\/li>\n<\/ol>\n<p>The trade-off is stark. Longer timelines and costly exit rights drive up contract prices and slow down deals. Short timelines and silent force majeure clauses keep costs low but shift operational risk into production. In an active rollout, a forced tool switch costs far more than the negotiated clause ever would have.<\/p>\n<h2 style=\"margin-top:32px;margin-bottom:16px;\">The AI Act shifts the burden of proof, it does not protect against failure<\/h2>\n<p>The obligations for general-purpose AI (GPAI) under Regulation (EU) 2024\/1689 have applied to new models since 2 August 2025. Transition periods extend until 2 August 2026 and beyond. Free and open-source licences are exempt from certain transparency and documentation requirements under Article 53, provided no systemic risk is present. However, models posing systemic risks remain subject to stricter obligations-even if their weights are openly available. Whether an individual model meets this threshold depends on the specific case.<\/p>\n<p>The General-Purpose AI Code of Practice, published on 10 July 2025, targets model providers. For users, its impact is indirect. If a provider fails to sign on and Article 53 documentation remains incomplete, the burden of proof shifts to the European deploying company. To date, no formal response from Brussels regarding the US dispute has been documented.<\/p>\n<p>According to Jensen Huang at CES 2026, roughly one in four tokens generated today originates from an open model. No independent verification of this claim exists. While this underscores the weight of procurement decisions, it doesn\u2019t replace contractual clauses. Regulatory uncertainty can\u2019t be negotiated away-its costs can only be allocated upfront and in writing. Those who leave this distribution unresolved bear the risk alone.<\/p>\n<h2 style=\"margin-top:32px;margin-bottom:16px;\">Frequently asked questions<\/h2>\n<details style=\"background:#f9f9f9;padding:16px 20px;margin:12px 0;border-radius:4px;\">\n<summary style=\"font-weight:700;cursor:pointer;color:#1a1a2e;\">Can downloaded weights still be used after a US listing?<\/summary>\n<p style=\"margin:12px 0 0 0;\">A listing does not automatically ban local inference in Europe. The real risks lie in payments, licences, support, and API access via US platforms. No ironclad guarantee exists for individual cases.<\/p>\n<\/details>\n<details style=\"background:#f9f9f9;padding:16px 20px;margin:12px 0;border-radius:4px;\">\n<summary style=\"font-weight:700;cursor:pointer;color:#1a1a2e;\">Which protects faster: export controls or cloud contracts?<\/summary>\n<p style=\"margin:12px 0 0 0;\">Existing export controls apply to unpublished US weights and regulate external transfers. The quickest market exclusion, however, comes via delisting from Azure, Bedrock, or Vertex. That\u2019s why a contract clause covering platform failure matters more than hoping for the file to remain accessible.<\/p>\n<\/details>\n<details style=\"background:#f9f9f9;padding:16px 20px;margin:12px 0;border-radius:4px;\">\n<summary style=\"font-weight:700;cursor:pointer;color:#1a1a2e;\">Are EU model clauses sufficient for a three-year framework agreement?<\/summary>\n<p style=\"margin:12px 0 0 0;\">The MCC-AI covers AI Act compliance, supplier obligations, data rights, and audits. However, they don\u2019t address geopolitically enforced model failures, sanctions triggers, or migration costs. These gaps remain a matter of negotiation between procurement and providers.<\/p>\n<\/details>\n<div style=\"margin:40px 0 24px 0;\">\n<p style=\"margin:0 0 12px 0;font-size:0.78em;font-weight:700;text-transform:uppercase;letter-spacing:0.18em;color:#666;\">More from the MBF Media Network<\/p>\n<div style=\"padding:14px 18px;border-left:3px solid #0bb7fd;background:#fafafa;margin-bottom:6px;\">\n<div style=\"font-size:0.7em;font-weight:700;color:#075e85;text-transform:uppercase;letter-spacing:0.12em;margin-bottom:4px;\">cloudmagazin<\/div>\n<p><a href=\"https:\/\/www.cloudmagazin.com\/2026\/07\/23\/cisco-antares-open-weight-vulnerability-localization\/\" style=\"font-weight:600;line-height:1.4;color:#1a1a1a;text-decoration:none;\">Antares: Open-weight SLMs detect CVE files<\/a><\/p>\n<\/div>\n<div style=\"padding:14px 18px;border-left:3px solid #202528;background:#fafafa;margin-bottom:6px;\">\n<div style=\"font-size:0.7em;font-weight:700;color:#202528;text-transform:uppercase;letter-spacing:0.12em;margin-bottom:4px;\">mybusinessfuture<\/div>\n<p><a href=\"https:\/\/mybusinessfuture.com\/ki-nutzung-ostdeutschland-kmu-abstand-schliessen\/\" style=\"font-weight:600;line-height:1.4;color:#1a1a1a;text-decoration:none;\">AI in Eastern Germany: Why SMEs must close the gap<\/a><\/p>\n<\/div>\n<div style=\"padding:14px 18px;border-left:3px solid #69d8ed;background:#fafafa;\">\n<div style=\"font-size:0.7em;font-weight:700;color:#00707f;text-transform:uppercase;letter-spacing:0.12em;margin-bottom:4px;\">securitytoday<\/div>\n<p><a href=\"https:\/\/www.securitytoday.de\/2026\/07\/21\/hugging-face-ki-agent-dataset-pipeline\/\" style=\"font-weight:600;line-height:1.4;color:#1a1a1a;text-decoration:none;\">OpenAI models hacked Hugging Face: what to check now<\/a><\/p>\n<\/div>\n<\/div>\n<p style=\"text-align:right;color:#868e96;font-size:0.75em;margin-top:40px;\"><em>Image source: AI-generated (July 2026)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From a model release, a political power struggle has developed within eight days. Anyone negotiating an AI framework agreement now needs different clauses.<\/p>\n","protected":false},"author":115,"featured_media":33484,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_focuskw":"AI procurement","_yoast_wpseo_title":"Washington decides which AI is allowed to run here","_yoast_wpseo_metadesc":"US threatens sanctions on Chinese AI models, over 100 companies object. What this means for AI procurement in Europe.","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":0,"_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":0,"featured_post_sortierung":0,"featured_post":0,"pre_headline":"","bildquelle":"","teasertext":"","language":"de","_evm_slot_owner":"","_evm_translation_lang":"","_wp_old_slug":[],"footnotes":""},"categories":[700,12],"tags":[],"class_list":["post-33492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ict-infrastructure","category-itk-infrastruktur","entry"],"wpml_language":"en","wpml_translation_of":33471,"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Washington decides which AI is allowed to run here<\/title>\n<meta name=\"description\" content=\"US threatens sanctions on Chinese AI models, over 100 companies object. 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