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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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Pyramid Solutions NetStaX EtherNet/IP Stack
CISA flags critical CVE-2026-78012 (CVSS 9.8) stack buffer overflow in Pyramid Solutions NetStaX EtherNet/IP stacks below v5.6.1, risking crashes or remote attack vectors.
CISA republished Pyramid Solutions' advisory for CVE-2026-78012, a CWE-121 stack-based buffer overflow in the NetStaX EtherNet/IP stack versions prior to 5.6.1, scored CVSS 9.8. Large Class 3 explicit-message requests can exceed the application-side receive buffer without generating a CIP error, potentially causing memory corruption, device crashes, or a silent remote attack vector. All eight adapter and scanner DLL/development kit variants, including CIP Security editions, are affected across critical manufacturing, energy, water, and chemical sectors. No public exploitation has been reported.
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SolarWinds Database Mapper and Task Factory enable data professionals to accelerate cloud migrations
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ENISA: Frontier AI Is Changing the Speed of Cyberattacks. Europe Needs to Catch Up
ENISA warns frontier AI compresses attack lifecycles to minutes, with exploits possible within 15 minutes of disclosure and median 72-minute breach-to-exfiltration times.
ENISA's July 2026 paper 'ENISA's view on Cybersecurity in the Frontier AI Era' argues AI-assisted attackers may weaponize vulnerabilities within 15 minutes of disclosure and achieve initial-access-to-data-exfiltration in a median 72 minutes, creating a 'negative time-to-exploit' problem. The report cites one organisation whose CVE volume rose from roughly 80 in Q1 2025 to almost 500 in Q1 2026, then about 500 reports per day when frontier-AI tools were used. ENISA recommends machine-speed defence under 'Cybersecurity as Code', EPSS and VEX-based prioritisation, AI-assisted incident response with human oversight, and an assume-breached architecture.
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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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