Nearly 200 technology companies and Nvidia chief executive officer Jensen Huang have urged the Trump administration not to ban Chinese open-source artificial intelligence models, warning that restrictions would stifle domestic innovation and damage the broader industry.

The pushback arrives as Commerce Department officials weigh whether to sanction Chinese AI labs over claims of intellectual property theft and model distillation. Huang told Axios that the market is misreading the impact of recent releases like China’s Kimi K3, noting that widespread adoption of high-performing open models ultimately drives greater demand for American AI chips.