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Banning open-source AI models would be a tragic mistake that hurts America's position in the AI race, because you cannot punish American developers for Chinese distillation and American companies must be able to use everything in the public domain.

Sachs argues that banning open-source AI would backfire on America, as the rest of the world will still use Chinese open models, and American companies need access to all public-domain contributions. ✦ AI generated

David Sacks · All-In Podcast · 2026-07-24 · original ↗

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Where do you stand Sax? That's what everybody wants to know.

I think it would be a tragic mistake if the government were to take action against the open source ecosystem. That would do nothing but hurt America's position in this AI race. It would backfire badly. And I think that the key point here is that regardless of what you think about distillation, you cannot punish American developers for it. So, you know, you can't say that American companies and American developers can't use Chinese contributions to the public domain. That's just cutting off our nose to spite our face.

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3:50where things stand. Um >> where do you stand? Where do you stand Sax? That's what everybody wants to know. >> Yeah, I think it's important for me to make my opinion known in the spirit of again contributing my voice so the president hears all perspectives and then can make the best decision. Look, I think it would be a tragic mistake if the government were to take action

4:10against the open source ecosystem. That would do nothing but hurt America's position in this AI race. It would backfire badly. And I think that the key point here is that regardless of what you think about distillation, you cannot punish American developers for it. So, you know, you can't say that American companies and American developers can't use Chinese contributions to the public domain. That's just cutting off our nose

4:40to spite our face. I mean, obviously, >> American companies have to be able to use everything that's in the public domain because the rest of the world will be using those things. And let me just say, I've said for a while that Anthropic is guilty of regulatory capture, of attempts to seek government protection. This is a company that is the fastest growing tech company at scale in history. They started the year

5:02at 10 billion of ARR. They're now over 70 billion of ARR. This is not a company that needs government protection. This is not a company that is under threat from competitors or or whether they're Chinese or otherwise. And yet they have been very successful at trying to panic everybody into thinking that they need some sort of government protection. And the tell on this, the way that you know

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