AI news brief: The release of Kimi K2 has reignited debates about US AI competitiveness and the open-source vs closed-source model debate. On the surface, social media is buzzing, but reports suggest behind-the-scenes maneuvering in Washington — OpenAI and Anthropic are accused of lobbying regulators to voice concerns about open-source Chinese models. This episode of TechCrunch’s Equity podcast features Kirsten Korosec, Sean O’Kane, and Anthony Ha discussing the frenzy. The three point out that this debate echoes the earlier DeepSeek release: Chinese models launch and match or outperform frontier models on some benchmarks, triggering immediate panic in the tech world, including commentary from an OpenAI executive that amplified the discussion. Sean O’Kane describes the reaction as a ‘repeated panic performance’ — the Silicon Valley industry is always on edge, waiting for something to emerge out of nowhere and outshine everything else. He cited an example from last week of someone showing Kimi ‘recreating’ an entire macOS in 30 minutes — visually impressive, but ultimately not a real operating system. He also joked that everyone should get out and enjoy the weekend instead of sparring on Twitter all weekend. Kirsten Korosec raises a key question: Are strict restrictions on Chinese AI models actually ensuring the US wins the AI race, or merely benefiting a handful of frontier labs? She sees this as the core issue often overlooked in such policy discussions. The episode also interviews journalist Tim Fernhol (truncated here); see the original link for details.