Bessent warns China could face sanctions over AI IP theft
Bessent said the administration will review Chinese open-source models for signs of theft and could sanction firms if American model watermarks are confirmed.
- On Tuesday, Treasury Secretary Scott Bessent announced the Trump administration will investigate Chinese AI models for intellectual property theft, threatening sanctions against companies building offerings on "stolen materials."
- Anthropic alleged that Chinese tech giant Alibaba conducted "the largest known distillation attack" to extract capabilities from Claude, using thousands of fraudulent accounts to evade detection and violate service terms.
- Operators linked to Alibaba conducted approximately 28.8 million interactions with Claude models between April 22 and June 5 using roughly 25,000 fraudulent accounts, according to Anthropic's June 10 letter.
- Washington and China plan to hold talks regarding artificial intelligence in September, with Bessent representing the American government while companies including Alibaba and ByteDance have participated in similar discussions.
- Industry experts note distillation is standard practice used globally, and tech leaders warn that government intervention could create market uncertainty or stifle broader AI innovation.
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Bessent Warns Chinese AI Firms Could Face US Sanctions Over IP Theft
U.S. Treasury Secretary Scott Bessent warned on Tuesday, July 21, that the Trump administration would consider imposing sanctions on China if Chinese artificial intelligence models are found to have stolen intellectual property from American companies. In an interview with Fox Business, Bessent said the Trump administration supports the development of open-source models but will not […]
US threatens to sanction Chinese AI; Huang pushes back
On Tuesday, Treasury Secretary Scott Bessent went on television with a warning for China. On the same day, the chief executive of the company that powers the entire AI boom went the other way. The threat Bessent said the US will scrutinise Chinese open-source models for stolen intellectual property, as Bloomberg first reported. It could […] This story continues at The Next Web
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