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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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G7 urges organizations to prepare for quantum cyber threats
G7 Cyber Security Working Group and CISA jointly urge organizations to begin migrating to post-quantum cryptography now, citing harvest-now-decrypt-later risk.
In a joint advisory, the G7 Cyber Security Working Group and CISA recommend starting post-quantum cryptography migration immediately rather than waiting for quantum computers to break current encryption. They warn attackers can already harvest encrypted data for later decryption, threatening long-lived secrets such as government records and trade secrets. Organizations are told to inventory sensitive systems, prioritize them, and fold quantum-resistant upgrades into routine refresh cycles. The advisory follows a UK 2035 PQC roadmap and recent US executive orders on quantum preparedness.
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