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China-Based Artificial Intelligence Companies Conducting Industrial-Scale Distillation Campaigns Against U.S. AI Companies
NSA, CISA, and FBI warn DeepSeek, Alibaba, and other Chinese AI firms ran industrial-scale distillation of U.S. frontier models, threatening U.S. AI leadership.
A joint NSA, CISA, and FBI Cybersecurity Advisory (AA26-251A) says China-based firms DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from U.S. frontier models including Claude, GPT, Gemini, and Grok, likely with Chinese government knowledge. Campaigns running since at least late 2024 used native APIs, cloud providers, third-party aggregators, gray-market proxy "transfer stations", and shared premium subscriptions to bypass geographic restrictions, evade safeguards, and violate providers' terms of use. The agencies recommend detecting anomalous prompts, accounts, and usage patterns; subtly altering responses to suspected distillers; and cross-organization intelligence sharing. They also call DeepSeek's publicly cited $5.6M training cost misleading because it excludes data acquired through distillation.
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Chinese AI firms are siphoning capabilities from American models, CISA warns
CISA, NSA and FBI warn Chinese AI firms including DeepSeek and Moonshot AI extracted billions of tokens from US frontier models via distillation campaigns.
A joint CISA, NSA and FBI advisory says China-based firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have run industrial-scale knowledge distillation campaigns against US frontier models such as Claude, GPT, Gemini and Grok since at least late 2024, likely with Chinese government knowledge. The campaigns used gray-market API proxies called transfer stations, premium account pools and traffic routing to bypass restrictions, evade safeguards and exfiltrate billions of tokens used to train models like DeepSeek R1/V3 and Kimi. The agencies challenge DeepSeek's reported $5.6 million training cost and recommend identity verification, usage monitoring, response variation, differential privacy and indicator sharing as defenses.
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AL26-019 - Vulnerabilities impacting Citrix NetScaler ADC and NetScaler Gateway - CVE-2026-19490 and CVE-2026-19489
Canadian Cyber Centre alerts on Citrix NetScaler ADC/Gateway flaws CVE-2026-19490 (authentication bypass) and CVE-2026-19489 (buffer overflow), urging emergency patching.
The Canadian Centre for Cyber Security issued alert AL26-019 covering two Citrix NetScaler vulnerabilities disclosed in a vendor advisory on August 19, 2026. CVE-2026-19490 (CWE-288) allows a remote unauthenticated attacker to bypass authentication on appliances configured as a Gateway for SSL VPN, ICA Proxy, CVPN, RDP Proxy, or as an AAA virtual server. CVE-2026-19489 (CWE-120) is a classic buffer overflow that may cause memory overflow, unpredictable behavior, or denial-of-service conditions. Affected appliances are vulnerable when configured as a SAML IdP; fixed versions include 14.1-73.32, 13.1-63.21, and 13.1-37.277 for FIPS.
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US agencies warn of AI-powered attacks on Siemens industrial controllers
NSA, CISA, FBI, DOE, and EPA warn threat actors use AI-assisted scripts and snap7 libraries to access internet-exposed Siemens S7 PLCs in critical infrastructure sectors.
NSA, CISA, FBI, DOE, and EPA issued a joint advisory warning that threat actors combine open-source snap7.dll/python-snap7 libraries with AI-generated scripts to gain read/write access to Siemens S7-200 through S7-1500 PLCs over the S7comm protocol. Actors use Censys and ZoomEye to find internet-exposed devices and abuse default or weak credentials, with activity assessed as persistent reconnaissance and positioning for future write operations. Agencies urge device inventory, patching, removing PLCs from the internet, and hardening; the pattern resembles Iran-linked CyberAv3ngers targeting of Rockwell, Schneider, and Siemens PLCs.
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