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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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Infostealer Logs Expose Replayable AI Tokens That Can Bypass MFA
Okta finds infostealer logs contain thousands of replayable AI session tokens and API keys, letting criminals bypass MFA and access services from Google, Anthropic and OpenAI.
Okta analyzed a 7 GB infostealer dump from August 2, 2026 covering 5,871 infected machines in 162 countries and found 555 of 44,791 JWTs related to AI services, plus 1,843 unexpired JWTs and JWEs (largely set by OpenAI via NextAuth.js) and 24 still-valid API keys for Google Gemini, OpenAI, Groq and OpenRouter. Valid session tokens and API keys can be replayed with anti-detect browsers like Camoufox to bypass credential and MFA checks, fueling an underground market for AI account access known as LLMjacking, where attackers rack up victims' AI compute bills. Some 17.7% of the JWTs contained plaintext PII usable for social engineering. Google's GTIG reported growing buyer demand for Claude, Gemini, Cursor and Devin credentials, and Mandiant handled an incident where an actor used an exposed GitHub PAT to deploy unauthorized AI infrastructure and scale high-performance compute.
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1Password's AI patching benchmark is misleading
Trail of Bits reanalysis says 1Password's 26% AI clean-fix rate is misleading; 86% of eligible patches blocked exploits.
Trail of Bits critiques 1Password's FLAWED AI patching benchmark, arguing its 26% clean-fix headline mixes trials where agents were instructed to apply wrong fixes (22% of data) with trials that prohibited compiling or testing (36%). Restricting to reasonable conditions, 2,634 of 3,067 patches (86%) blocked the supplied exploit. Trail of Bits also reports 12.5% of 2,265 developer first fixes failed in its own 2024-2026 assessments, and released post-patch-validation and review-walkthrough agent skills.
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Security through obscurity is dead, and AI delivered the fatal blow
AI agents are killing security through obscurity, accelerating vulnerability discovery and patch-gap exploitation, experts warn, with OT/ICS systems most at risk.
An opinion/analysis piece arguing AI has made security through obscurity obsolete, citing record vulnerability disclosure volumes after Microsoft's Patch Tuesday addressed 974 CVEs. FBI Cyber Division assistant director Brett Leatherman said latest AI models found significant vulnerabilities in open source libraries running on most web servers. The article cites at least four espionage crews (most suspected China-linked) exploiting Chromium's patch-gap window with a rapid exploit kit, and a five-agency advisory on AI-generated exploitation scripts breaching internet-exposed Siemens S7 Series PLCs at water, manufacturing, and energy facilities. Experts including John Hultquist, Chris Inglis, and Katie Moussouris warn AI erodes the expertise barrier protecting obscure OT/ICS systems while defensive AI patching lags, with studies showing AI-generated patches fail more than half the time.
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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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NASA AIT-GUI Flaws Could Let Unauthenticated Attackers Issue Spacecraft Commands
Researchers disclosed 9.4-CVSS flaws in NASA/JPL's AIT-GUI allowing unauthenticated attackers to issue arbitrary spacecraft commands via exposed command endpoints.
Cycode disclosed a flaw chain in AIT-GUI, the browser-based operator console for NASA/JPL's open-source AMMOS Instrument Toolkit, tracked as GHSA-p9r8-2q67-fp86 with CVSS 9.4, affecting versions 2.5.1 and earlier. The server binds to 0.0.0.0:8080, issues sessions without credential checks, and lets unauthenticated users issue spacecraft commands via POST /cmd and reach files outside intended directories via /script/run and /seq (CWE-306, CWE-352, CWE-22). Version 2.5.2 adds host binding and same-origin checks but does not add authentication, and a related missing-authentication flaw was published separately as CVE-2026-60112 with CVSS 9.3.
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BeyondTrust Patches Critical Auth Bypass Flaws in Remote Support and PRA
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