US intelligence agencies, including the FBI, NSA, and CISA, have issued a joint advisory accusing Chinese AI firms of stealing technology from American models on an industrial scale. The report alleges that companies like DeepSeek, Alibaba, Moonshot AI, and Z.ai used knowledge distillation to extract billions of tokens from frontier models such as Claude, GPT, Gemini, and Grok since late 2024.
These firms allegedly utilized special tools and multiple accounts to hide their activities while copying coding and math skills to reduce their own training costs. US officials state this malicious activity likely occurred with the knowledge of the Chinese government, potentially strengthening China's military and cyber capabilities.
China has firmly rejected these claims, with Foreign Ministry spokesperson Mao Ning calling the accusations unfounded smears. Chinese officials insist their AI progress stems from technological self-reliance and urge cooperation rather than false allegations. This dispute unfolds ahead of planned talks between President Donald Trump and President Xi Jinping later this month to discuss AI governance.
US Treasury Secretary Scott Bessent commented that China can never get ahead of the US in AI because they steal their models. Meanwhile, unrelated tech news highlights Exdion launching Exdion MASK to secure AI-driven policy checks by anonymizing sensitive client data before processing.
In funding news, startup Aqua raised $18.8 million in a Series A round led by Founders Fund. The company plans to use the capital to expand its platform for investing in alternative assets like real estate and private equity, following significant growth since its launch last year.
Key Takeaways
- US agencies accuse Chinese firms DeepSeek, Alibaba, Moonshot AI, and Z.ai of industrial-scale AI theft.
- Chinese companies allegedly used knowledge distillation to extract billions of tokens from Claude, GPT, Gemini, and Grok.
- US officials claim this malicious activity likely happened with the knowledge of the Chinese government.
- China rejects US allegations, stating its AI progress comes from technological self-reliance.
- US Treasury Secretary Scott Bessent claims China steals models and can never surpass the US in AI.
- US and China are preparing for talks between President Trump and President Xi Jinping on AI governance.
- Exdion launched Exdion MASK to anonymize data for AI-driven policy checking services.
- Aqua raised $18.8 million in Series A funding led by Founders Fund to expand its investment platform.
- The US accusations mark a significant escalation in the technology rivalry between the two nations.
- Chinese companies allegedly used multiple accounts and special tools to hide their data extraction activities.
US accuses China of stealing AI tech on industrial scale
US officials claim Chinese companies are stealing artificial intelligence technology from American firms at an industrial scale. They allege that Chinese developers use a method called AI distillation to copy capabilities from models made by Anthropic, OpenAI, Google, and SpaceX. US agencies say this activity likely happens with the knowledge of the Chinese government and could strengthen China's military and cyber capabilities. China has rejected these claims, stating its AI progress comes from technological self-reliance and urging cooperation instead of false accusations.
US agencies accuse China of stealing AI tech on industrial scale
Three US agencies accused Chinese AI companies of aggressive, industrial-scale distillation activity on Tuesday. They stated that this method allows companies to reduce the cost of creating new artificial intelligence tools by using outputs from larger models. The report highlights that this process helps Chinese firms gain unauthorized access to restricted proprietary functionalities. This accusation marks a significant escalation in the technology rivalry between the United States and China.
China rejects US claims of malicious AI theft before Trump Xi talks
China hit back against US claims that its AI developers extracted capabilities from American models like Claude, GPT, Gemini, and Grok since late 2024. The US FBI, NSA, and Cybersecurity and Infrastructure Security Agency issued a joint advisory accusing Chinese firms of malicious and targeted distillation activities. Chinese Foreign Ministry spokesperson Mao Ning called these accusations unfounded and urged the US to refrain from smears. Both nations are preparing for planned talks between President Donald Trump and President Xi Jinping later this month to discuss AI governance.
China denies US claims of malicious AI theft ahead of Trump Xi talks
China rejected US allegations that its AI developers are engaged in aggressive, malicious industrial-scale efforts to extract capabilities from American systems. A joint cybersecurity advisory named Chinese companies DeepSeek, Alibaba, Moonshot AI, and Z.ai as participants in these activities. The US stated that these companies likely acted with Chinese government awareness and violated terms of use to gain unauthorized access. Meanwhile, US Treasury Secretary Scott Bessent claimed that China can never get ahead of the US in AI because they steal their models.
US intelligence links Chinese government to massive AI tech theft
US intelligence and security authorities revealed that Chinese AI companies are stealing technology from US firms with the help of the Beijing government. An 18-page joint advisory from the NSA, FBI, and other agencies identified businesses like DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI as involved in systematic extraction. The report explains that these companies use knowledge distillation campaigns to extract billions of AI tokens from frontier models like Claude, ChatGPT, Gemini, and Grok. This theft allows Chinese firms to rapidly develop their technology while reducing training costs.
US Agencies Accuse Chinese AI Firms of Stealing Tech
The NSA, FBI, and CISA accused six Chinese AI companies of stealing technology from American models. The firms, including DeepSeek, Alibaba, and Moonshot AI, used billions of data requests to copy coding and math skills. They used special tools and multiple accounts to hide their actions while improving their own systems. The US agencies say this malicious activity likely happened with the knowledge of the Chinese government. These accusations follow recent market drops when Moonshot's Kimi model challenged US leaders.
US Agencies Warn Against Malicious AI Distillation
US security agencies released a stern warning about Chinese AI companies extracting data from American models. The NSA, CISA, and FBI stated that firms like DeepSeek and Moonshot AI took billions of tokens since late 2024. They accused these companies of using Claude, GPT, Gemini, and Grok models to train their own systems. The agencies described these actions as aggressive, malicious, and targeted efforts to gain unauthorized access. This joint advisory highlights the industrial scale of the data theft involving millions of requests.
China Rejects US Claims of Malicious AI Theft
China responded strongly to US accusations that its AI developers are stealing technology maliciously. The Ministry of Foreign Affairs told the US to stop making unfounded claims against China. Officials stated that China's AI progress comes from self-reliance and urged both nations to cooperate. This dispute occurs ahead of planned talks between President Trump and Chinese leader Xi Jinping. US Treasury Secretary Scott Bessent claimed that China can never surpass the US in AI because they steal our models.
Exdion Launches New Tool to Secure AI Policy Checks
Exdion introduced Exdion MASK to improve data security for its AI-driven policy checking service. This new technology anonymizes sensitive client information before any processing begins to protect privacy. The tool helps insurance agencies reduce errors and save time while reviewing personal lines policies. It uses an X-Ray checklist and EyeQ AI service to help staff investigate coverage details quickly. This update ensures that names, addresses, and asset details remain safe during automated reviews.
Aqua Raises $18.8 Million for AI Investment Platform
A startup called Aqua raised $18.8 million in a Series A funding round to grow its business. Investors like Founders Fund, known for backing Airbnb and Stripe, led the investment. Aqua offers a platform that lets users invest in alternative assets such as real estate and private equity. The company plans to use the new money to expand its platform and hire more employees. Since launching last year, the user-friendly platform has already seen significant growth.
Sources
- Is China’s AI Rise Deepening the US Technology Security Battle?
- The U.S. accuses Chinese AI companies of stealing artificial intelligence technology on an industrial scale
- China hits back at US claims of 'malicious' AI distillation ahead of planned Trump-Xi talks
- China hits back at US claims of 'malicious' AI distillation ahead of planned Trump-Xi talks
- Chinese government linked to massive AI tech theft from American tech firms
- Moonshot, whose Kimi model rattled markets, accused of extracting U.S. AI capabilities
- U.S. Agencies Issue Stern Rebuke of China-Based AI Companies Over Alleged Distillation
- China hits back at US claims of 'malicious' AI distillation ahead of planned Trump-Xi talks
- Exdion Strengthens Data Security for AI-Driven Policy Checking with Exdion MASK
- AI-Native Alts Platform Raises $18.8M Series A
Comments
Please log in to post a comment.