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Feds accuse China of ‘systematic’ distillation of U.S. AI models

NSA, CISA, and FBI jointly accuse Chinese AI firms including DeepSeek and Moonshot AI of industrial-scale distillation of US frontier models.

A joint advisory from the NSA, CISA, and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI have systematically extracted capabilities from US frontier models since at least late 2024. The companies allegedly spent billions of tokens across millions of requests against Claude, ChatGPT, Gemini, and Grok, routing traffic through multiple accounts, platforms, proxies, and third-party aggregators to evade detection. Moonshot AI allegedly distilled 18 US models, including Anthropic's most advanced model, to train its Kimi-K2 and Kimi K3 models.

CyberScoop · 8d agoAI policy

Beijing Hits Back at Anthropic CEO’s Call to Curb China’s AI Development

China's Foreign Ministry rejected Anthropic CEO Dario Amodei's call to curb Chinese AI development as 'Cold War playbook' fearmongering.

China's Ministry of Foreign Affairs pushed back against Anthropic CEO Dario Amodei's essay warning that a Chinese AI lead would endanger the US, with spokesperson Guo Jiakun saying fearmongering and vicious competition disrupt global AI governance. Amodei urged continued restrictions on cutting-edge AI chip sales to China and predicted AI agents could take over the internet within 6-12 months without a global slowdown. The exchange precedes a planned September 24 Trump-Xi meeting covering AI governance, and follows a joint FBI/NSA/CISA advisory alleging Chinese developers distilled capabilities from Claude and GPT.

SecurityWeek · 2d agoAI policy

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