Republicans in the US House of Representatives are pushing a new sanctions bill aimed at foreign companies that they say are unlawfully copying advanced American artificial intelligence systems, with China and Russia the main targets. According to Bloomberg, the proposal would compel the administration to identify organisations using unauthorised extraction or imitation techniques on US-built models and could open the door to penalties through the Commerce Department’s blacklist as well as emergency powers under a 1977 law.

The legislation, called the American AI Model Theft Prevention Act, has been introduced by Bill Huizenga with backing from John Moolenaar, who chairs the House Select Committee on China. The measure is expected to go before the House Foreign Affairs Committee next week, underscoring how quickly AI intellectual property has become a national security issue on Capitol Hill.

At the heart of the dispute is a technique known as adversarial distillation, in which a new model is trained on the outputs of an existing one in order to imitate its capabilities at far lower cost. American developers including OpenAI, Anthropic and Google have said that Chinese firms are using that approach to build cheaper rival systems, with OpenAI specifically accusing DeepSeek of improper use of ChatGPT results. The companies behind the Frontier Model Forum have also said they are working to detect and disrupt such activity, which one report in the Los Angeles Times said could be costing US firms billions of dollars a year.

Supporters of the bill argue that copied models do not just threaten commercial returns; they can also strip away safety features built into the original systems. Industry warnings have focused on the risk that distilled versions may be easier to censor, harder to secure and less reliable at blocking harmful requests. The draft legislation would push the Commerce Department to treat such conduct as industrial espionage and would encourage the Justice Department to consider criminal cases where appropriate.

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Source: Noah Wire Services