# FBI, NSA, CISA flags Chinese AI companies for “industrial-scale” distillation of AI models of U.S. companies

> Source: <https://chatgptiseatingtheworld.com/2026/09/09/fbi-nsa-cisa-flags-chinese-ai-companies-for-industrial-scale-distillation-of-ai-models-of-u-s-companies/>
> Published: 2026-09-09 11:40:45+00:00

Three U.S. agencies — the FBI, NSA, and CISA — issued a report flagging numerous AI companies for engaging in “systematic extraction of proprietary functionalities and capabilities of U.S. AI companies’ models through industrial-scale knowledge distillation.”

“While ‘distillation’ is recognized as a legitimate and useful technique in AI research, China-based AI companies are engaging in aggressive, malicious, and targeted distillation activities at an industrial scale that extract restricted proprietary functionalities and capabilities of U.S. frontier AI models. The National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency

(CISA), and Federal Bureau of Investigation (FBI) (hereafter referred to as the authoring

agencies) are releasing this joint Cybersecurity Advisory to alert organizations about

these malicious activities and techniques and recommend mitigations to reduce their

potential impact.”

The Chinese companies include:

- DeepSeek,
- Moonshot AI,
- Alibaba,
- MiniMax,
- StepFun, and
- Z.AI

**Excerpt:**

**DOWNLOAD THE REPORT:**