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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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Datasette 1.0a39 and 0.65.4 security releases
Datasette shipped security patches 1.0a39 and 0.65.4 fixing subtle bugs in instances mixing public and private tables, found via an AI-assisted audit.
Datasette released parallel security fixes for its current alpha series (1.0a39) and stable 0.65.x family (0.65.4), advising anyone running a Datasette instance on the public web to update, especially where public and private tables are mixed. The underlying issues were reported by Sevban Dönmez and Alex Garcia, followed by an extensive audit of the codebase using Claude Fable 5.1, GPT-5.6, and GPT-6 Astra. Fixes were developed and reviewed collaboratively over nearly a week. No CVE identifiers or observed exploitation are mentioned in the announcement.
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