Key facts
- President Donald Trump-backed World Liberty Financial is collaborating with WorldClaw, a Hong Kong-based venture.
- WorldClaw offers access to AI models, with nearly half developed by Chinese companies like Alibaba and Baidu.
- Some of these Chinese companies face U.S. government restrictions due to national security concerns.
- World Liberty's crypto tokens are accepted as payment by WorldClaw, generating revenue for the Trump family.
- A White House spokesperson stated there are no conflicts of interest in the relationship.
President Donald Trump-backed World Liberty Financial is collaborating with WorldClaw, a Hong Kong-based venture that offers artificial-intelligence models developed by Chinese companies previously flagged by the U.S. administration for national security concerns. WorldClaw, founded this year, allows customers to access a range of AI models and accepts World Liberty's crypto tokens as payment, thereby generating revenue for the Trump family through their ownership stake in World Liberty.
A review by Reuters found that approximately half of the 90 AI models available on WorldClaw's website were developed by Chinese technology firms, including Alibaba, Baidu, and Z.ai. Some of these companies have faced U.S. government restrictions due to national security risks and intellectual property concerns. For instance, Baidu and Alibaba are designated by the U.S. Department of Defense as Chinese military-aligned companies, while Z.ai is on the Commerce Department's "entity list," severely restricting its access to U.S. technology.
Despite these concerns, the collaboration is not illegal, and Chinese AI models are gaining traction globally, even among U.S. tech companies due to their lower cost. However, seven experts on Chinese technology, trade, and government ethics suggested that this business arrangement, and the potential profits for President Trump via World Liberty, appears hypocritical given his administration's previous stance on Chinese tech companies. Sam Bresnick, a fellow at Georgetown University's Center for Security and Emerging Technology, commented that it seems hypocritical for the U.S. government to be concerned about Chinese AI threats while profiting from these tools.
World Liberty earns revenue from the use of its USD1 stablecoin, which is backed by traditional assets like U.S. Treasury securities. The Trumps are entitled to a percentage of the interest earned on these assets. White House spokesperson Anna Kelly stated that there are no conflicts of interest in the relationship and that President Trump acts in the best interests of the American public. A spokesman for World Liberty, David Wachsman, noted that WorldClaw is an independent company and that major U.S. firms also offer AI from Chinese companies, calling it a common approach. A WorldClaw spokesperson added that the company helps American AI companies reach international users and that offering a model does not equate to endorsing its developer.
While the Chinese AI models are generally legal to use in the U.S., some developers face restrictions. Baidu and Alibaba have disputed the U.S. government's designations, with Alibaba planning to sue for removal from the Pentagon's list. Z.ai, formerly Zhipu AI, is on the Commerce Department's entity list due to its alleged advancement of China's military modernization. Other models are from DeepSeek and Moonshot, accused by Trump administration officials of intellectual property theft.
Little public information is available about WorldClaw, which claims to be independently owned and operated. However, both companies benefit from their association. The Trump family owns 38% of World Liberty. Donald Trump Jr. and Eric Trump, co-founders of World Liberty, have promoted WorldClaw on social media. Ryan Fang, World Liberty's head of growth, has served as an external advisor to WorldClaw. The Trump family has reportedly earned over $1.4 billion from World Liberty token sales, part of a larger $2.3 billion earned from crypto.