Trump-backed WLFI Scrutinized Over Pentagon-Flagged AI Ties

World Liberty Financial, in which the Trump family holds a 38% stake, is under scrutiny after a review found that 43 of 90 artificial intelligence models available on its partner platform, Worldclaw, were built by Chinese companies the U.S. Department of Defense has identified as military-aligned.

Worldclaw is a Hong Kong-based AI marketplace that lists large language models from a mix of developers. The platform offers models from U.S. companies such as OpenAI and Anthropic alongside offerings from Chinese firms including Alibaba, Baidu, Z.ai, Deepseek and Moonshot. Worldclaw’s interface does not mark models by country of origin; users choose models based on performance and price.

Alibaba and Baidu are among the companies on Worldclaw’s roster that appear on a Department of Defense list describing firms as aligned with China’s military-industrial complex. Inclusion on that list does not make commercial use of their products illegal for U.S. businesses, but it brings additional scrutiny from government agencies and lawmakers.

Worldclaw and World Liberty Financial say they operate separately and that listing a model on a marketplace is not an endorsement of its developer or affiliations. The companies emphasize that availability on the platform does not imply vetting of political or military ties.

The financial connection between the two companies is central to the scrutiny. Worldclaw accepts WLFI’s USD1 stablecoin for payments. Each USD1 payment on the AI platform can generate on-chain activity and revenue for WLFI’s token system. Because the Trump family holds a 38% stake in WLFI, a portion of revenue tied to USD1 use on Worldclaw can flow back to the family’s investment.

Ryan Fang, WLFI’s head of growth, serves as an adviser to Worldclaw. Donald Trump Jr. and Eric Trump have publicly promoted the platform on social media.

Earlier reporting identified a reported $100 million WLFI token investment linked to a Chinese businessman who has been subject to a UK money-laundering inquiry, and noted USD1’s rapid growth as a contender in the stablecoin market. Those financial details, together with Worldclaw’s AI partnerships, have prompted questions from observers about potential conflicts of interest.

It is unclear whether federal lawmakers, the Department of Defense, or financial regulators will take formal action. U.S. officials have expressed interest in limiting the spread of some Chinese AI technologies in U.S. markets, and the financial tie between a U.S.-listed stablecoin and a platform offering products from Department of Defense–flagged firms is drawing attention from policymakers.

For now, Worldclaw continues to offer a mix of U.S. and Chinese models, and WLFI maintains its ownership stake and potential to benefit financially when USD1 is used on the marketplace.