US warns of Chinese AI firms' industrial-scale extraction and distillation efforts

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1. https://www.techradar.com/pro/extraction-and-distillation-us-state-department-upgrades-ai-theft-accusations-to-target-chinas-deepseek-moonshot-ai-and-minimax - Please view link - unable to able to access data
2. https://www.tomshardware.com/tech-industry/artificial-intelligence/deepseek-launches-1-6-trillion-parameter-v4-on-huawei-chips-as-u-s-escalates-ai-theft-accusations - DeepSeek, a Chinese AI startup, has unveiled its most advanced large language model, the 1.6 trillion parameter V4, optimised for Huawei's Ascend AI processors. This development signifies China's growing AI self-sufficiency and a shift from reliance on Nvidia GPUs. The V4 model offers a 1-million-token context window and is available in two versions: V4-Pro and V4-Flash. Despite being slightly behind OpenAI’s GPT-5.4 and Anthropic’s Claude Opus 4.6 in development, DeepSeek claims V4 outperforms all other open-source models in coding and reasoning benchmarks. This launch coincides with a U.S. diplomatic cable urging global embassies to raise concerns over alleged intellectual property theft by DeepSeek, Moonshot AI, and MiniMax, who are accused of distilling U.S. AI models to produce their own.
3. https://www.axios.com/2026/04/23/us-china-ai-theft-distillation - The Trump administration has accused China-backed operatives of conducting 'industrial-scale' operations to steal and replicate cutting-edge American artificial intelligence (AI) models. According to a memo from Michael Kratsios, Director of the White House Office of Science and Technology Policy, the actors—primarily based in China—used proxy accounts to bypass detection and manipulate AI systems to extract proprietary information. This development intensifies the ongoing U.S.-China AI rivalry and adds tension ahead of President Trump's upcoming visit to Beijing, where critical discussions on economic relations are expected. The U.S. has previously accused China of intellectual property theft, particularly through cyber-espionage tactics. While acknowledging that AI capabilities derived from stolen models may not be durable, Kratsios emphasised the administration’s intent to share intelligence with U.S. AI companies and support the development of stronger defences.
4. https://www.pcgamer.com/software/ai/white-houses-claim-that-china-is-engaged-in-deliberate-industrial-scale-campaigns-to-distil-us-frontier-ai-systems-called-pure-slander-by-chinese-embassy/ - A recent White House memo alleges that Chinese entities are systematically engaging in 'industrial-scale campaigns' to distil cutting-edge U.S. AI systems. AI distillation refers to creating a new model by training it on the outputs of a more advanced one, potentially replicating proprietary technology. The White House reportedly plans to share intelligence with American AI firms to help them defend against such activities. Companies like Anthropic have previously accused Chinese firms DeepSeek, Moonshot, and MiniMax of such actions. Michael Kratsios, a senior U.S. science and technology adviser, also claimed that Chinese operations are using numerous proxy accounts and jailbreaking techniques to bypass detection and extract proprietary information. The U.S. government may take steps to hold these foreign actors accountable. In response, the Chinese embassy in Washington denied the allegations, calling them 'pure slander' and emphasising China's commitment to intellectual property rights. The issue gains urgency as Chinese AI companies, such as DeepSeek with its newly launched DeepSeek-V4 model, continue advancing rapidly, increasing U.S. concerns over IP theft and competitive disadvantage in the AI landscape.
5. https://www.techradar.com/pro/security/we-will-be-taking-action-to-protect-american-innovation-white-house-accuses-china-of-systematically-extracting-american-ai-technologies - The White House has accused China of orchestrating a large-scale, coordinated effort to extract sensitive American artificial intelligence (AI) technologies. According to a memo from Michael Kratsios, Director of the White House Office of Science and Technology Policy, foreign entities, primarily based in China, are using tens of thousands of proxy accounts and jailbreak techniques to bypass defences and access proprietary American AI systems. These efforts are described as 'industrial-scale' and are characterised as a direct threat to U.S. innovation. The U.S. government has pledged to take retaliatory actions to protect its AI sector, framing this behaviour as malicious exploitation rather than innovation. The memo comes ahead of a high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, and just as Congress is preparing expansive tech export control legislation to curtail China’s access to advanced American technologies like high-performance chips. China has rejected the allegations, emphasising its commitment to intellectual property rights. Despite restrictions, China has made significant progress in AI development, surprising U.S. developers with advanced models like Deepseek and OpenClaw, narrowing the expected technological gap between the two nations.
6. https://www.pcgamer.com/software/ai/white-houses-claim-that-china-is-engaged-in-deliberate-industrial-scale-campaigns-to-distil-us-frontier-ai-systems-called-pure-slander-by-chinese-embassy/ - A recent White House memo alleges that Chinese entities are systematically engaging in 'industrial-scale campaigns' to distil cutting-edge U.S. AI systems. AI distillation refers to creating a new model by training it on the outputs of a more advanced one, potentially replicating proprietary technology. The White House reportedly plans to share intelligence with American AI firms to help them defend against such activities. Companies like Anthropic have previously accused Chinese firms DeepSeek, Moonshot, and MiniMax of such actions. Michael Kratsios, a senior U.S. science and technology adviser, also claimed that Chinese operations are using numerous proxy accounts and jailbreaking techniques to bypass detection and extract proprietary information. The U.S. government may take steps to hold these foreign actors accountable. In response, the Chinese embassy in Washington denied the allegations, calling them 'pure slander' and emphasising China's commitment to intellectual property rights. The issue gains urgency as Chinese AI companies, such as DeepSeek with its newly launched DeepSeek-V4 model, continue advancing rapidly, increasing U.S. concerns over IP theft and competitive disadvantage in the AI landscape.