AI Agent 'Lobster Fever' Grips China Despite Risks

A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
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AI Agent 'Lobster Fever' Grips China Despite Risks

A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)

Chinese entrepreneur Frank Gao used to spend long hours running his social media accounts but now outsources the chore to AI agent tool OpenClaw, which is taking the country by storm despite official warnings over cybersecurity.

OpenClaw, created in November by an Austrian coder, differs from bots like ChatGPT because it can execute real-life tasks such as sending emails, organizing files or even booking flight tickets.

"Since January, I've spent hours on the lobster every day," Gao told AFP, referring to OpenClaw's red crustacean mascot. "We're family."

After downloading OpenClaw, users connect it to existing artificial intelligence models of their choice, then give it simple instructions through instant messaging apps, as if to a friend or colleague.

The tool has fascinated tech circles worldwide but particularly in China, gripping tech-savvy companies and individuals keen to keep up with the next big thing in AI.

Hundreds of people queued at tech giant Baidu's Beijing headquarters this week for an OpenClaw event where engineers helped attendees set up their "little lobsters".

It was one of many similar meetups to experiment with the tool, which are drawing crowds from Shanghai to Shenzhen.

Some municipalities, including the eastern cities of Wuxi and Hangzhou, have pledged hundreds of thousands of dollars to support the adoption and development of OpenClaw and other AI agents.

But the lobster fever, as it has been dubbed, has also sparked security concerns.

"What's truly scary about agents like OpenClaw is this: once they have your digital keys, they can theoretically access all the services you've authorized, and can autonomously decide when to activate them," Gao warned.

"The attacker effectively gains a 'master key' to your digital identity," said the engineer, who has named his OpenClaw agent "Q" after his business name QLab.

- 'Use with caution' -

Chinese national cybersecurity authorities and Beijing's ministry of industry and IT have warned of the risks of OpenClaw hacks.

"Use intelligent agents such as 'lobster' with caution," national IT research institute expert Wei Liang advised government agencies, public institutions, companies and individuals in a message on state media.

The mixed signals of rolling out policy incentives while issuing warnings "reflects the authorities' cautious tolerance towards 'lobster fever'," Zhang Yi, founder of tech consultancy iiMedia, told AFP.

Austrian programmer Peter Steinberger, who built OpenClaw to help organize his digital life, was hired last month by ChatGPT maker OpenAI.

Meanwhile, a separate team of coders that made Moltbook, a Reddit-like pseudo social network where OpenClaw agents converse, are joining Meta.

Top Chinese tech companies have also been quick to get involved.

The likes of Tencent, Alibaba, ByteDance and Baidu are offering simplified installation and affordable coding plans to help users who want to host OpenClaw agents on their cloud servers -- seen as safer than downloading it onto a personal computer.

In recent days AI companies big and small have also launched their own competing agent tools, such as ByteDance's ArkClaw, Tencent's WorkBuddy and Zhipu AI's AutoClaw.

The relatively low cost for cloud deployment of OpenClaw in China, subsidised by big tech firms, is one factor behind its popularity, said Gao Rui, a senior product manager at Baidu AI Cloud.

"For most people, it's likely just the price of a cup of coffee... which is why people will probably be keen to give it a try," she told AFP.

- FOMO -

Fear of missing out is also a big driver behind OpenClaw's success in China, said Chen Yunfei, an AI developer who created a popular online guide for using the tool.

"Most Chinese people are quite studious and forward-looking, so when confronted with new things, they might have stronger feelings" of so-called FOMO, he said.

Xie Manrui, a programmer whose latest project is a visualized system for managing OpenClaw agents, said the tool had arrived "at the right moment" to change perceptions in China of what AI can do.

"For many, AI is merely a clever chatbot that talks all the time but cannot act," he said.

Either way, it has piqued the curiosity of many young users.

At the Baidu event in Beijing, 24-year-old college student Zheng Huimin was waiting patiently in line with her friends.

"I'd like to give it a go to see what tasks it can actually help me accomplish," she told AFP.



Beijing Says China, US Should Work Together to Promote AI Governance

A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. (Reuters)
A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. (Reuters)
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Beijing Says China, US Should Work Together to Promote AI Governance

A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. (Reuters)
A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. (Reuters)

China and the United States "should work together to promote the development and governance of AI", Chinese foreign ministry spokesman Guo Jiakun said on Tuesday.

Cooperation on artificial intelligence was discussed by US President Donald Trump and China's Xi Jinping at talks in Beijing last week, both sides say, despite their countries' fierce rivalry over the fast-evolving technology.

"The two heads of state held constructive discussions on AI-related issues and agreed to launch an intergovernmental dialogue on artificial intelligence," Guo told a news briefing, confirming previous remarks by US Treasury Secretary Scott Bessent.

As major powers in the field, the countries should also work together "to ensure that AI better serves the progress of human civilization and the common well-being of the international community", Guo added.

Analysts said before the summit that fears over autonomous AI weapons, cybersecurity and the threat of new AI-designed bioweapons were mutual concerns for Xi and Trump.

In 2024, Xi agreed with Trump's predecessor Joe Biden that humans must remain in control of the decision to fire nuclear weapons.

But with China set on narrowing the United States' lead in the strategic sector, until now little further cooperation has followed.

The White House recently accused Chinese entities of "industrial-scale" efforts to steal US technology, while Beijing blocked the acquisition of a Chinese-founded AI agent tool by tech giant Meta.

But at the same time, the AI cybersecurity threat has been highlighted by Mythos, a powerful new model that US startup Anthropic withheld from public release to stop it from being exploited by hackers.

Bessent told CNBC on Thursday that Washington and Beijing would set up a "protocol" on the path forward on AI, particularly "to make sure non-state actors don't get a hold of these models".

The world's "two AI superpowers are going to start talking", Bessent said.

While details on what will be discussed are so far scarce, Sun Chenghao, a senior fellow at Tsinghua University's Center for International Security and Strategy, told AFP that "compared with 2024, the topics to be discussed this time might be broader".

"The two sides could share some best practices and exchange experiences on how to address and manage" AI's impact on society, for example on youth employment, he said.

"Even though China and the United States are in competition in the field of AI, the impact of AI technologies on the entire world -- and on all kinds of actors, whether states, societies, or businesses -- is extremely significant."

However, keeping thorny issues such as the export of high-end US chips that can train and power AI systems for separate meetings "may help create a better atmosphere for talks between the two sides", Sun added.


Musk Loses Blockbuster OpenAI Suit as Jury Says Too Late

Tesla CEO Elon Musk attends a state banquet with US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing, China, May 14, 2026. (Reuters)
Tesla CEO Elon Musk attends a state banquet with US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing, China, May 14, 2026. (Reuters)
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Musk Loses Blockbuster OpenAI Suit as Jury Says Too Late

Tesla CEO Elon Musk attends a state banquet with US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing, China, May 14, 2026. (Reuters)
Tesla CEO Elon Musk attends a state banquet with US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing, China, May 14, 2026. (Reuters)

A federal jury ruled Monday that billionaire Elon Musk waited too long to sue OpenAI and its co-founders, delivering a decisive victory to the ChatGPT startup and ending one of Silicon Valley's most closely watched courtroom battles.

The swift decision caps a three-week trial that saw a parade of tech titans take the stand, with Musk arguing that OpenAI's pivot to a profit-driven business betrayed its original nonprofit mandate.

The jury in Oakland federal court found that Musk's claims against OpenAI CEO Sam Altman, President Greg Brockman, The OpenAI Foundation and Microsoft were barred by statutes of limitations, leaving the core arguments of the world's richest person largely unaddressed.

Judge Yvonne Gonzalez Rogers, who had asked the jury to advise her on the matter, accepted and confirmed their decision.

- 'Sabotage' -

The outcome spared OpenAI from a potentially existential legal threat.

Had Musk prevailed, he potentially could have forced the company to revert to its nonprofit structure -- a move that would have derailed its planned IPO and unwound ties to major investors including Microsoft, Amazon and SoftBank.

"The finding of the jury confirms that this lawsuit was a hypocritical attempt to sabotage a competitor," OpenAI attorney William Savitt said outside the courthouse.

"Musk can bring his claims, and he can tell his stories, but what the nine members of this jury found is that his stories were just that -- stories, not facts," he added.

Musk, the chief executive of both SpaceX and Tesla, had sued OpenAI over its transformation from a scrappy nonprofit into the $850 billion juggernaut behind ChatGPT.

He claimed Altman and Brockman improperly used a $38 million donation intended to sustain OpenAI as a research lab devoted to developing artificial intelligence for the benefit of humanity.

But in their deliberations, the jury first had to resolve a threshold issue of whether Musk, who filed suit in 2024 -- four years after his last contribution -- had done so within the statutory time limit.

Designated courtroom deputy Edwin Cuenco reads the verdict before US District Judge Yvonne Gonzalez Rogers at Elon Musk's lawsuit trial over OpenAI's for-profit conversion at a federal courthouse in Oakland, California, US, May 18, 2026 in a courtroom sketch. (Reuters)

Musk on X said he would appeal, as the "jury never actually ruled on the merits of the case" and that to "loot charities is incredibly destructive to charitable giving in America."

The tycoon also lashed out at Judge Gonzalez Rogers for setting a "terrible precedent," writing in a since-deleted post accusations that she was an "activist judge" who used the jury as a "fig leaf" for a flawed ruling she could have made herself.

- 'Soap opera' -

The outcome had largely been expected to come down to which of the bickering billionaires the jury would believe.

Testimony centered heavily on Altman's integrity and behind-the-scenes maneuvering that rankled colleagues, many of whom have since left OpenAI.

Attorneys for OpenAI countered with attacks on Musk, pointing to his varying narratives about the early days of the company and parsing testimony from Shivon Zilis -- a business associate with whom he has four children -- who served as an intermediary between the executives.

Altman, fired by OpenAI's board in November 2023 for a lack of candor before being reinstated under employee pressure, emerged with allegations of manipulation and a toxic work culture unresolved.

Microsoft, OpenAI's largest backer with $13 billion committed, was also spared.

"This is an important victory for Altman and OpenAI and clears the path for an IPO by removing this black cloud," Dan Ives of Wedbush Securities told AFP.

"Musk was creating noise around this lawsuit but ultimately it was more of a soap opera than a long-term negative for OpenAI," he added.


China Market for Nvidia AI Chips to Open ‘Over Time’, Says Huang

 CEO of Nvidia Jensen Huang speaking on stage at a Dell Technologies World event happening in Las Vegas on Monday, May 18, 2026. (AP)
CEO of Nvidia Jensen Huang speaking on stage at a Dell Technologies World event happening in Las Vegas on Monday, May 18, 2026. (AP)
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China Market for Nvidia AI Chips to Open ‘Over Time’, Says Huang

 CEO of Nvidia Jensen Huang speaking on stage at a Dell Technologies World event happening in Las Vegas on Monday, May 18, 2026. (AP)
CEO of Nvidia Jensen Huang speaking on stage at a Dell Technologies World event happening in Las Vegas on Monday, May 18, 2026. (AP)

Nvidia boss Jensen Huang expects China to eventually open its market to high-end US chips that can train and run artificial intelligence systems.

But he did not discuss sales of the powerful H200 model with top officials in Beijing, the businessman told Bloomberg Television in an interview broadcast Monday.

Huang travelled to the country last week with US President Donald Trump, who met Chinese President Xi Jinping.

The superpowers are in a fierce race for AI supremacy, and the H200 chip had until recently been barred from sale in China by Washington over national security concerns.

However, there is no sign that Chinese tech companies are buying them, as Beijing ramps up domestic chip development in a bid to challenge US dominance in the key sector.

"H200s are licensed to sell to China. But the Chinese government has to decide how much of their local market do they want to protect," Huang said.

"My sense is that over time the market will open," added Huang, CEO of Nvidia -- the world's most valuable company, due to huge demand for its AI hardware.

Trump said in December he had reached an agreement with Xi to ease the restrictions on H200 chips, a move some US lawmakers have warned could help the Chinese military.

Nvidia's most top-of-the-range offerings, the Blackwell and forthcoming Rubin series, remain banned for sale in China.

Xi told a delegation of US business executives on Thursday that China would "open wider" to the world.

"American companies will enjoy even brighter prospects in China," Xi said, Chinese state media reported.

Bloomberg Television asked Huang whether he spoke to Xi and Prime Minister Li Qiang about his chips.

"I didn't discuss directly with them about H200" although "President Trump had some conversations with the leaders", he replied.