Chinese authorities have reportedly held talks with leading tech firms, including Alibaba Group Holding Ltd.

(NYSE:BABA), ByteDance, and Z.ai, about potentially restricting overseas access to Beijing's most advanced AI models, including unreleased versions.

Officials led by China's Ministry of Commerce discussed imposing restrictions on the most advanced AI models, including both closed-source and open-source systems, according to sources, Reuters reported on Wednesday.

Chinese officials are considering stricter controls on advanced AI by making the leak or theft of proprietary AI technology a national security offense and exploring limits on who can fund domestic AI startups.

The proposed measures are still under discussion, could apply only to future AI models, and may not necessarily be implemented, as per the report.