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.
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.