Trump-Backed Crypto Venture Faces Scrutiny Over Partnership Offering Chinese AI Models

By COMFORT OGBONNA

A cryptocurrency venture backed by President Donald Trump is working with a Hong Kong-based artificial intelligence company that provides access to AI models developed by several Chinese technology firms that have faced scrutiny from the U.S. government over national security and intellectual property concerns.

WorldClaw, a company founded earlier this year, operates a platform that allows customers to access a range of artificial intelligence models and pay for the service using digital tokens associated with World Liberty Financial, the Trump-backed cryptocurrency venture. The Trump family owns a significant stake in World Liberty and can benefit financially from the use of its tokens.

An examination of the models available through WorldClaw found that nearly half of the 90 AI models offered on its platform were developed by Chinese companies, including Alibaba, Baidu, Z.ai and other firms that have been targeted or criticized by U.S. authorities. The platform also provides access to models developed by major American technology companies, including OpenAI and Anthropic.

There is no indication that the partnership itself violates U.S. law. Chinese-developed AI models are generally available for individuals and businesses to use in the United States, and the commercial distribution of such models is becoming increasingly common as companies look for lower-cost alternatives in the rapidly expanding global AI market.

Still, the arrangement has raised questions because of the Trump administration’s increasingly aggressive scrutiny of some Chinese technology companies. Experts in technology policy, trade and government ethics said the relationship creates a potential tension between the administration’s national security policies toward China and a business venture that can generate revenue from providing access to Chinese-developed AI technology.

Sam Bresnick, a fellow at Georgetown University’s Center for Security and Emerging Technology, said the arrangement could appear inconsistent with Washington’s efforts to limit the risks associated with China’s rapidly advancing artificial intelligence sector.

The financial details of the relationship between World Liberty and WorldClaw are not publicly known. It is also unclear how much revenue the Trump family has received as a result of cryptocurrency payments made through the WorldClaw platform.

World Liberty earns money from the use of its USD1 stablecoin, including transactions in which WorldClaw customers use the digital currency to pay for access to AI models. The stablecoin is designed to maintain a value of $1 and is backed by traditional financial assets, including U.S. Treasury securities. The Trump family is entitled to a share of the interest generated by those underlying assets.

A White House spokesperson said there was no conflict of interest and that President Trump acts in the interests of the American public.

A World Liberty spokesman described WorldClaw as an independent company and said it was common for major technology platforms to provide users with access to AI models developed by companies from both the United States and China.

WorldClaw said it helps American AI companies reach customers internationally and stressed that making an AI model available on its platform does not amount to an endorsement of the company that developed it.

The Chinese models available through WorldClaw include products from Alibaba and Baidu, two technology giants that the U.S. Department of Defense has identified as Chinese military-linked companies. Such designations restrict the Pentagon from conducting business with the affected companies, although they do not automatically prevent ordinary American consumers or businesses from accessing their publicly available technology.

Other models on the platform come from Z.ai, formerly known as Zhipu AI. The company has been placed on the U.S. Commerce Department’s Entity List, a designation that imposes significant restrictions on its ability to obtain certain American technologies and requires U.S. companies to obtain export licenses for some transactions.

U.S. authorities have said Z.ai contributes to China’s military modernization through advanced artificial intelligence research and development. The company has disputed the U.S. government’s characterization of its activities.

WorldClaw also offers models developed by Chinese AI companies DeepSeek and Moonshot. American officials have accused some Chinese AI companies of improperly obtaining technology or intellectual property from U.S. competitors, allegations that Chinese authorities and the companies involved have rejected.

Alibaba has also challenged its designation as a Chinese military-linked company, arguing that the decision was unjustified and saying it intends to pursue legal action seeking removal from the list.

The debate comes as the Trump administration’s policy toward China’s artificial intelligence industry continues to evolve. Trump has repeatedly emphasized the importance of maintaining U.S. leadership in advanced technology and competing with China in AI development.

At the same time, Washington and Beijing have sought to reduce tensions in several areas, including technology and artificial intelligence, as both countries attempt to manage growing concerns over an AI arms race.

The WorldClaw relationship therefore sits at the intersection of national security, technology competition and the increasingly lucrative cryptocurrency industry. Supporters could argue that allowing users to choose among competing AI models reflects a business-oriented approach, while critics say the arrangement could undermine efforts to reduce U.S. dependence on Chinese technology.

Peter Jeydel, an attorney specializing in sanctions and trade controls, said the partnership could be viewed in two different ways: as inconsistent with a tougher policy toward Chinese technology or as evidence of a more business-focused approach to relations with China.

WorldClaw has kept a relatively low public profile. The company describes itself as independently owned and operated and says it is not managed or controlled by World Liberty or its affiliates.

Despite the formal separation, the two organizations have developed close business and promotional ties. The Trump family owns about 38% of World Liberty, while WorldClaw accepts USD1 and other cryptocurrencies as payment for its services.

Ryan Fang, World Liberty’s head of growth, has also served as an outside adviser to WorldClaw. The company said his role has focused on the adoption of USD1, business partnerships and expanding international access to AI services, while emphasizing that his position is strictly advisory.

Trump’s two eldest sons, Donald Trump Jr. and Eric Trump, who are co-founders of World Liberty, have publicly promoted WorldClaw and its partnership with the cryptocurrency venture.

The family has already generated substantial income from its cryptocurrency interests. Its earnings from World Liberty token sales have exceeded $1.4 billion, according to previously reported financial estimates, contributing to billions of dollars in total cryptocurrency-related revenue.

While Donald Trump Jr. and Eric Trump are involved in operating the family business, President Trump retains his ownership interest through a trust.

Beyond the financial questions, security experts have raised concerns about the potential risks associated with allowing users to access Chinese AI models through an international platform.

WorldClaw says its WorldRouter service, which aggregates access to multiple AI models, has more than 10,000 users and handles more than 50 million requested tasks each day. The company is also developing AI-agent technology designed to perform tasks for users, including ordering food and summarizing emails.

Security specialists warn that AI systems connected to sensitive user information can create risks beyond the accuracy of their responses. Potential concerns include data collection, government monitoring, censorship of certain outputs and the possibility of malicious instructions being introduced into AI systems.

The risks could become more significant as AI agents gain the ability to perform actions on behalf of users rather than simply answering questions. An agent with access to emails, financial information or online accounts could potentially have much greater consequences if its security were compromised.

WorldClaw acknowledges on its website that user inputs may be shared with the companies responsible for providing individual AI models. The company says it takes privacy and security seriously and has implemented safeguards designed to protect users and their information.

The controversy highlights a growing challenge for the global AI industry: Chinese and American models are increasingly being offered side by side on the same platforms, even as governments impose restrictions on some of the companies developing those technologies.

For World Liberty, the partnership also illustrates the complicated intersection between cryptocurrency, artificial intelligence and the business interests associated with the Trump family. As Washington continues to debate how aggressively it should restrict Chinese technology, the commercial success of platforms offering access to both American and Chinese AI models is likely to remain under close scrutiny.