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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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338 Million Attack Simulations Reveal The State Of Enterprise Defense
Picus Labs' Blue Report 2026, from 338 million attack simulations, finds defenses strong at the perimeter but blocking only 37% of post-compromise actions.
Picus Labs' fourth annual Blue Report analyzed over 338 million attack simulations from production environments in H1 2026. Average prevention effectiveness rose from 62% to 69%, but only 37% of attacker actions were blocked after compromise, with reconnaissance and credential theft largely missed. IOC-based malware download prevention fell to 50% from 71% in 2024, and Mimikatz credential dumping from LSASS memory was blocked 94% of the time versus 17% from other memory locations and 3% from registry.
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July 2026 CVE Landscape
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March 2026 CVE Landscape: 31 High-Impact Vulnerabilities Identified, Interlock Ransomware Group Exploits Cisco FMC Zero
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September 2025 CVE Landscape
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ToolShell Exploit: Critical SharePoint Zero
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US Agencies Warn China Is Systematically Extracting Frontier AI Capabilities
NSA, CISA and FBI warn Chinese AI firms including DeepSeek and Moonshot systematically extracted billions of tokens from US frontier models since late 2024.
The NSA, CISA, and FBI report that China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from US frontier models such as Claude, GPT-4/GPT-5, Gemini, and Grok 4 since late 2024. The distillation trained DeepSeek's R1 and V3 and Moonshot's Kimi-K2/K3 models, and the agencies mapped the tactics to MITRE ATLAS while noting additional novel techniques like subscription exploitation and request metadata sanitization. They describe the activity as a strategic economic threat to US technological leadership and recommend behavioral detection, differential privacy, and targeted cost-imposing responses.
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June 2026 CVE Landscape
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April 2026 CVE Landscape
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October 2025 CVE Landscape
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