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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.
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What happens when AI agent governance is missing at scale
meshIQ engineering head Gourab Basu argues AI agent governance must inspect proposed tool calls in-flow, since prompts alone cannot control nondeterministic agents.
In a Help Net Security interview, Gourab Basu, Global Head of Engineering at meshIQ, argues that prompt instructions are an insufficient control boundary for nondeterministic AI agents. He advocates a framework-independent governance engine that inspects proposed tool calls and parameters before execution, citing an example of pausing refunds above $100 for human approval. He warns that scaling from ten to a thousand agents makes manual oversight and destination-side controls unworkable, so governance must sit inside the agent execution flow across frameworks such as FastMCP.
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Underwriting Superintelligence: Backing Agents you can Sue — Rune Kvist, AIUC
AIUC raised a $40 million Series A to build AIUC-1, an agent security standard backed by insurance, serving Cursor, Harvey, Lovable, and ElevenLabs.
AIUC, cofounded by former Anthropic product hire Rune Kvist, announced a $40 million Series A led by Ribbit Capital and First Harmonic. The startup builds AIUC-1, an emerging standard for agent security, safety, and reliability, stress-testing agents for jailbreaks, hallucinations, and data leaks. It pairs standards with insurance underwriting through Lloyd's of London and counts Cursor, Harvey, Lovable, and ElevenLabs among its customers. Kvist argues trust and liability, not capability, are becoming the binding constraint on AI adoption.
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Why 2026 is the Year to Upgrade to an Agentic AI SOC
Elastic Security Labs argues 2026 is the production inflection point for agentic AI in security operations centers.
Elastic Security Labs argues 2026 is the practical inflection point for agentic AI SOCs, noting nearly two-thirds of organizations are experimenting with AI agents while fewer than one in four have production deployments. The piece outlines operational challenges and recommendations: treat agents as non-human identities with least-privilege tool access, version-control system prompts as code, deploy unified agents with on-demand task packages, and enforce per-agent budgets and rate limits. It stresses explainability via RAG and transparent reasoning traces so analysts can verify and override autonomous decisions.
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CISA Warns Chinese AI Firms Extract Billions of Tokens From Claude, GPT, Gemini and Grok
CISA, NSA and FBI advisory says six Chinese AI firms extracted billions of tokens from Claude, GPT, Gemini and Grok via API proxies since late 2024.
A joint advisory from CISA, NSA and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI harvested billions of tokens across millions of exchanges from Claude, GPT, Gemini and Grok variants since late 2024. Operators allegedly used API proxy 'transfer stations', account pools, bulk premium subscriptions and prompt injection or jailbreak-style requests to force models to reveal chain-of-thought reasoning. DeepSeek's R1 and V3 and Moonshot's Kimi-K2 and Kimi-K3 models reportedly benefited from the extracted data. CISA urged providers to add identity checks, monitor subscription-to-usage ratios, rate limit, and share infrastructure signals with cloud platforms.
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Orchid Security targets AI agent risk with drift detection and kill switches
Orchid Security launched identity drift detection and application-level kill switches to govern AI agents that exploit enterprise identity debt.
Orchid Security announced AI readiness controls including agent discovery, continuous drift detection between an agent's intended purpose and observed behavior, and application-level kill switches that revoke credentials, disconnect tools, or suspend agent workflows. The company cites its Identity Gap 2026 finding that 57% of enterprise identity is unseen and unmanaged, which agents can leverage to gain elevated access in seconds to minutes. New integrations include a certified PAM integration for Palo Alto Networks Idira and identity telemetry streaming to Splunk Enterprise Security. The launch follows agentic enhancements to Orchid's Identity Control Plane in May 2026 and cites NIST's draft Cyber AI Profile and DORA as regulatory drivers.
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