US Pax Silica Push Stalls as China's GLM-5.2 Gains Ground

The US State Department's Pax Silica initiative, which aims to build a US-led AI supply chain with allies and partners, is running into trouble as cheap, high-performing Chinese open-source AI models gain traction. According to Axios's June 26, 2026 report, while Washington seeks to assemble a "secure and resilient bloc" to reduce dependence on China, developers on the ground are adopting Chinese models for their practicality, undermining a core premise of the US alliance strategy.