The Trump administration is again weighing measures that could sharply restrict the use of advanced Chinese artificial intelligence models in the U.S., a move that could reshape the fast-growing AI industry while strengthening the market position of leading American developers such as OpenAI and Anthropic, Axios reported on Monday.

According to people familiar with internal discussions, administration officials have revived proposals that would discourage or effectively block U.S. companies from using open-source AI models developed by Chinese firms, citing national security and cybersecurity concerns.

The renewed interest follows the emergence of Kimi, a powerful Chinese AI model that has gained attention for delivering performance comparable to leading American systems at a lower cost.

Officials have not publicly announced any policy changes, and neither the White House nor the Commerce Department responded to requests for comment.

According to sources familiar with the discussions, the Commerce Department last year explored adding several Chinese AI laboratories to its Entity List, a move that would require U.S. companies to obtain government licenses before accessing the technology.

The National Security Agency and the White House Office of the National Cyber Director also reportedly considered issuing guidance warning U.S. businesses about the risks of relying on Chinese-developed AI models.

Another proposal under consideration would have required American companies hosting Chinese AI models to guarantee their security and accept liability if those systems were compromised.

Commerce officials also drafted rules that would have used federal supply chain authorities to target Chinese open-source AI models, according to a source familiar with the discussions.

Those initiatives were ultimately shelved amid concerns from administration officials that excessive regulation could hamper U.S. innovation and competitiveness.

But personnel changes within the administration, coupled with rapid advances by Chinese AI developers and renewed cybersecurity concerns, have revived momentum behind tougher restrictions, according to multiple sources.

Rather than imposing an outright ban, officials are now said to be considering a combination of procurement restrictions, expanded use of the Commerce Department's Entity List and public warnings highlighting alleged security vulnerabilities in Chinese AI systems.

"What's actually happening is slower and more durable," one person familiar with the discussions said, describing an effort to steer companies away from Chinese models without imposing a formal ban.

Another source said the administration is focused on emphasizing the potential for hidden backdoors, data security risks and governance concerns associated with Chinese-developed AI.

Supporters argue the approach would simultaneously encourage the development of a stronger American open-source AI ecosystem while reducing reliance on Chinese technology.

The debate comes as U.S. companies increasingly adopt Chinese open-source AI models because they are significantly less expensive and have rapidly closed the performance gap with American competitors.

The issue has also exposed divisions within the administration and the broader technology industry.

David Sacks, an outside White House AI adviser, warned Sunday that government intervention could unintentionally cement the dominance of the largest U.S. AI companies.

"We are at a critical inflection point in AI policy," Sacks wrote on X. "The leading closed labs, already a duopoly in terms of AI model revenue, want the government to eliminate their open-source competition."

Sacks has long argued that overly restrictive regulation could benefit dominant AI developers while limiting innovation by smaller companies and open-source projects.