🦄 Startups & VC Jul 24, 2026 · amoore

America’s Open-Model Paradox

Sequoia Publications
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America’s Open-Model Paradox
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America’s Open-Model Paradox To Distill, or Not to Distill?
By Dean Meyer and Konstantine Buhler



Published July 24, 2026









To Distill, or Not to Distill?



China increasingly supplies the models Western companies use to serve, train, and build AI.



Qwen’s share of new open-model fine-tunes and adaptations rose from 1% in January 2024 to 69% by February 2026 according to ATOM’s Report. The majority of American AI startups seem to be using Chinese open weights somewhere in their sta

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