World Liberty Financial Partners with AI Firm Using Chinese Models Flagged by U.
S.
World Liberty Financial, a company backed by former President Donald Trump, is collaborating with an artificial intelligence firm that utilizes models from Chinese technology companies previously identified by the Trump administration for national security risks. The partnership involves World Liberty’s USD1 stablecoin, which is accepted by the AI firm, WorldClaw, as payment for access to its AI models. Ryan Fang, an executive at World Liberty, also serves as an advisor to WorldClaw.
WorldClaw’s AI Model Offerings
Hong Kong-based WorldClaw provides access to a wide array of AI models, with 43 out of its 90 offerings developed by Chinese companies, including prominent names like Alibaba, Baidu, and Z.ai. The platform also features models from U.S. companies OpenAI and Anthropic.
A spokesperson for World Liberty, David Wachsman, stated that WorldClaw operates independently and pointed out that major U.S. firms also offer AI models from both Chinese and American developers. “This is a common and widely accepted approach,” Wachsman told Reuters.
However, several of the Chinese AI firms featured on WorldClaw have faced scrutiny from the U.S. government. In January 2025, Z.ai, formerly Zhipu AI, was added to the Commerce Department’s Entity List, which restricts its access to U.S. technology. In June, the Pentagon designated Alibaba and Baidu as “Chinese Military Companies Operating in the United States,” prohibiting the Department of Defense from engaging in business with them.
An Alibaba spokesperson contested the designation, asserting that the company is neither a Chinese military entity nor part of any military-civil fusion strategy. The spokesperson described the Pentagon’s decision as “arbitrary and capricious” and indicated plans to sue for its removal.
The extent of any financial gains by the Trump family from WorldClaw, or the specific financial terms between the companies, remains undisclosed. While World Liberty executive Ryan Fang advises WorldClaw, Donald Trump Jr. and Eric Trump have publicly promoted the firm.
Allegations of AI Model Distillation
The news emerges amid accusations that several Chinese AI firms available through WorldClaw have engaged in distillation attacks against U.S. AI developers. In February, Anthropic alleged that DeepSeek, Moonshot AI, and MiniMax used approximately 24,000 fraudulent accounts to generate over 16 million exchanges with its Claude model. This was achieved through model distillation, a method where one AI model learns by analyzing the outputs of another. In June, Anthropic urged Congress to strengthen export controls and impose penalties for large-scale model extraction.
“We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the administration to maintain American AI leadership,” an Anthropic spokesperson told Decrypt.
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