A new wave of AI technology development is unfolding within the crypto community, specifically in China where a startup called Sand AI has unveiled its impressive video-generating AI model called Magi-1. While celebrated by tech industry experts, this promising innovation is encountering challenges with content restrictions that raise concerns about transparency and accessibility. Sand AI’s Magi-1, designed to generate videos through frame prediction, boasts high-quality output and improved physics accuracy. The company aims to push the boundaries of visual AI creation. However, access to the full potential of Magi-1 is currently limited due to its massive size, requiring powerful hardware that most users lack. Consequently, Sand AI’s hosted platform serves as the primary gateway for testing the model. During tests by Bitcoin World, a concerning finding emerged: the platform utilizes an AI-based censorship system** to filter content. This system restricts the use of certain image types.** Images deemed politically sensitive, such as those featuring Xi Jinping, Tiananmen Square and Tank Man, as well as images related to Hong Kong’s independence movements, are blocked from upload. China’s strict information controls, including a 2023 law prohibiting content that might damage national unity or social harmony, likely drives this practice. While other AI companies in China like Hailuo AI have implemented censorship restrictions as well, Sand AI’s approach seems more comprehensive. Interestingly, despite Chinese AI models exhibiting strong filtering on political topics, they often maintain more lenient regulations regarding pornography compared to their American counterparts. A recent report highlights a lack of basic safeguards against non-consensual nude images in some Chinese AI video generators. The implications of Sand AI’s censorship policies are far-reaching. While the open-source nature of Magi-1 is impressive, its practical use is hampered by these political filters. This raises concerns about the true openness and accessibility of this advanced technology for a global audience. **The incident reveals the complex web of regulatory constraints that impact AI companies operating within China. It raises questions regarding the potential for innovation to be hindered by censorship in pursuit of national unity**, leaving a significant gap between open-source principles and industry practices. For developers and users seeking advanced video generation AI, this restriction presents both challenges and opportunities.** This situation highlights the diversity of freedom and control in AI development across different geographic areas.