China is never far from the AI conversation, and there’s a fierce debate over whether open-source LLMs are helping America’s geo-political arch-rival.

Josh Wolfe of Lux Capital kicked off the discussion by saying the quiet part out loud: where people stand on this issue “depends on where you sit in the cap table.” He pointed to Vinod Khosla, the first investor in OpenAI and a leading critic of open-source as a national security threat.

Wolfe framed open-source large language models as essentially science projects, in the spirit of Karl Popper and open inquiry. “The government would love to regulate, but open source will be far more diffuse, and it will win.” When it comes to China, TikTok, which he called an “AI-driven algorithmic assault” on the U.S., is what we need to worry about.

Teresa Carlson, who spent decades selling Microsoft and then Amazon services to overseas governments, called for the industry to “radically collaborate with governments. Trying to use a hammer won’t work.”

She and Wolfe agreed that China was less than six to nine months behind the U.S. in AI.

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