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US accuses Chinese AI firms of ‘industrial-scale’ theft of AI technology

The agencies said the firms used distillation to train smaller models from U.S. systems and lower costs, with likely Chinese government awareness.

  • On Tuesday, the National Security Agency, FBI, and Cybersecurity and Infrastructure Security Agency accused China-based AI firms of "industrial-scale" data extraction, claiming they maliciously copied technology from American-made AI models using "distillation."
  • The method called "distillation" allows companies to transfer capabilities from larger models to smaller ones to cut training costs, which agencies described as "aggressive, malicious and targeted."
  • Agencies identified DeepSeek, Moonshot, Alibaba, MiniMax, and StepFun as companies utilizing American-made AI variants to train their products, an activity occurring "likely with Chinese government awareness."
  • These accusations emerge ahead of Chinese President Jinping's upcoming visit to WASHINGTON, creating significant diplomatic friction as tensions escalate.
  • US-China relations face further pressure as both nations prepare for a mid-September dialogue concerning AI safety risks, complicating bilateral negotiations.
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14 Articles

Lean Left

<p>US accuses Chinese AI companies of stealing artificial intelligence technology on an industrial scale Three US agencies have reported aggressive AI distillation by Chinese companies. The method makes it possible to reduce the cost of creating </p>models.

·Kyiv, Ukraine
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Center

In a joint statement, US national security and law enforcement agencies – including the NSA, CISA and FBI – accused several Chinese artificial intelligence companies, including DeepSeek, Moonshot AI and Alibaba, of systematically copying the technology of American AI models using the so-called distillation method.

·Budapest, Hungary
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PressNewsAgency broke the news on Tuesday, September 8, 2026.
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