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U.S. Agencies Accuse China AI Firms of Distilling Claude, GPT, Gemini, and Grok

NSA, CISA and FBI accuse Chinese AI firms including DeepSeek of industrial-scale distillation of Claude, GPT, Gemini and Grok since late 2024.

A joint bulletin from the NSA, CISA and FBI accuses China-based AI firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI of systematic, industrial-scale distillation of U.S. frontier models. The agencies say billions of tokens were extracted from Claude, GPT, Gemini and Grok variants since at least late 2024 through APIs, cloud relays, obfuscated accounts and gray-market proxies, likely with Chinese government backing. Firms allegedly shared premium subscriptions across developer teams and used chain-of-thought extraction and automated failover to evade blocks. Mitigations include subtly altering responses to suspected distillers and correlating activity across providers, clouds and aggregators.

The Hacker News · 8d agoAI policy

Separating AI's Technological Problems from Its Capitalism Problems

Schneier and Sanders argue AI's harms stem from capitalist incentives and governance gaps, not just technical limits, urging structural reform.

Writing with Nathan E. Sanders in Tech Policy Press, Bruce Schneier argues that AI's technological problems (hallucination, sycophancy, overconfidence) must be separated from socio-political problems created by capitalist market incentives. The essay contrasts US frontier-scale, energy-intensive development with China's incentive-driven leaner open models on commodity hardware, and cites Switzerland's Apertus model - trained on licensed data using public computing and renewable hydropower - as a public-interest alternative. It contends that proposals like research pauses, data-center moratoria, and federal screening conflate technology problems with governance problems, and that society faces independent choices on both axes.

Schneier on Security · Aug 15, 2026AI policy