Nearly 200 U.S. startups are urging the Trump administration not to impose broad restrictions on Chinese open-weight AI models, warning that a blanket ban would increase costs and threaten smaller AI businesses. A coalition of startup founders, investors, and researchers explained that the technology has become an affordable foundation for building AI products. Instead, the group wants narrowly tailored safeguards that address national security risks without cutting startups off from widely used models. The appeal follows reports that the administration is weighing new restrictions on Chinese AI as competition between Washington and Beijing intensifies. Companies behind open-weight Chinese models have been repeatedly accused of massive distillation campaigns against leading U.S. models. Frontier U.S. AI companies have supported stronger guardrails around advanced AI. Still, many startups argue that broad restrictions would increase development costs, reduce competition, and ultimately make it harder for smaller American firms to thrive. The startups’ case against a blanket ban According to letters sent to White House officials and seen by Politico, 179 American technology companies, under the Little Tech Association umbrella, …