China-based AI companies

U.S. Intelligence Agencies Accuse China AI Firms of Industrial-Scale Model Distillation

U.S. cybersecurity and intelligence agencies have alleged that China-based artificial intelligence companies are conducting systematic extraction of proprietary functionalities from American frontier AI models through distillation attacks. The activity is described as occurring at an industrial scale and forming a core part of China's AI development strategy. The targeted models include Claude (Anthropic), GPT (OpenAI), Gemini (Google), and Grok (xAI). No specific company names or agency identifiers were disclosed in the initial report.