Bessent says U.S. watermarks found on Chinese AI models

July 21, 2026 8:24 AM EDT

Investing.com -- Treasury Secretary Scott Bessent said Tuesday that U.S. watermarks have been discovered on Chinese artificial intelligence models and described the situation as unacceptable.

"We are finding watermarks of our U.S. large language models on many of the Chinese models, and that's unacceptable," Bessent said in an interview with Fox Business Network. "So we're going to be looking at that in the coming days or week."

Bessent added that China models need to be held to the same standards. He also noted that the U.S. is starting to see the emergence of U.S. open source models.

The Treasury Secretary said that the U.S. is creating competitors in the artificial intelligence space.



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