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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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New CISO appointments 2026
Companies including Mistral AI, Trellix, Marriott, and ANZ appointed new CISOs in July-September 2026 amid high security-leadership turnover.
CSO Online's rolling column tracks senior security appointments, noting many companies are hiring a CSO/CISO for the first time. Notable moves include Thomas Coudray leaving Ledger to become Mistral AI's CISO, David Soto joining Trellix from Amazon, and Daniel Dubowski becoming Marriott International's SVP and CISO. Other appointments span ANZ, Gigamon, Axonius, Tricentis, Remitly, Allied Universal, and the State of California.
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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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Risky Bulletin: Russia starts blocking DoH and DoT
Russian users report blocks on DoH and DoT servers, including Cloudflare 1.1.1.1 and Google 8.8.8.8, in an apparent censorship crackdown.
Russian internet users began reporting failures connecting to DNS-over-HTTPS and DNS-over-TLS servers, suggesting a government crackdown on the two privacy protocols. The blocks reportedly cover Cloudflare's 1.1.1.1 and Google's 8.8.8.8 resolvers; Roskomnadzor has not officially confirmed the action. The agency tested a similar block in March on Beeline's network and had named DoH for blocking as early as 2021. The bulletin also briefly notes state-sponsored phishing of EU officials, a DDoS against Norway's Digdir, the ReliaQuest/ShinyHunters dispute, and older ransomware and breach disclosures.
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