{"slug": "intelligence-agencies-warn-of-chinas-large-scale-ai-model-distillation-efforts", "title": "Intelligence agencies warn of China’s large-scale AI model distillation efforts", "summary": "The National Security Agency, Cybersecurity and Infrastructure Security Agency, and Federal Bureau of Investigation issued a joint advisory on Tuesday warning that Chinese AI companies DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI have used aggressive distillation tactics to extract billions of tokens from U.S. frontier AI models since 2024, likely with Chinese government awareness. The advisory names Anthropic's Claude, OpenAI's ChatGPT, Google's Gemini, and SpaceXAI's Grok as targeted models and recommends detection, response, and intelligence-sharing measures for U.S. developers.", "body_md": "# Intelligence agencies warn of China’s large-scale AI model distillation efforts\n\n## Three agencies issued a joint statement warning that Chinese companies DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have used the tactics to extract billions of tokens from U.S. models.\n\nThree federal national security and intelligence agencies issued a [joint advisory](https://www.cisa.gov/news-events/cybersecurity-advisories/aa26-251a?utm_source=ChinaAICompaniesDistillation&utm_medium=GovDelivery) on Tuesday warning U.S. artificial intelligence developers that their Chinese counterparts are targeting American-made models with distillation campaigns, where one model queries a larger, more advanced model to learn from it.\n\nThe National Security Agency, Cybersecurity and Infrastructure Security Agency and Federal Bureau of Investigation specified that Chinese companies DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI used “aggressive, malicious, and targeted distillation” tactics to extract billions of tokens from the exchanges within U.S. frontier AI models, likely with Chinese government awareness, since 2024.\n\n“China-based AI companies route distillation requests through multiple pathways to gain unauthorized access, consequently violating U.S. AI companies’ terms of use,” the advisory said. “These pathways include native application programming interfaces (APIs), remote cloud providers, and third-party aggregators that automatically obfuscate user metadata to avoid detection.”\n\nLeading models, including variants of Anthropic’s Claude, OpenAI’s ChatGPT, Google’s Gemini and SpaceXAI’s Grok, were all listed as targeted models.\n\nWhile AI model distillation is a legitimate and useful training technique used to save costs and reduce development timelines, adversarial companies can use it to steal intellectual property.\n\n“China-based AI companies deliberately distribute operations across multiple providers, platforms, and pathways to avoid single-point detection,” the advisory said. “They also attempt to distill the best capabilities and proprietary features of each U.S. frontier model to train their China-based AI models. This represents systematic extraction of proprietary functionalities and capabilities threatening U.S. technological leadership.”\n\nThe agencies recommended three remediating steps for U.S. AI developers: implement comprehensive detection and mitigation; deploy targeted response changes; and establish cross-organization intelligence sharing.\n\nWhite House Office of Science and Technology Director Michael Kratsios in July [called out](https://www.nextgov.com/artificial-intelligence/2026/07/white-house-accuses-chinese-ai-developer-ip-theft/414948/) Chinese distillation efforts — specifically on the part of Moonshot AI — that have sought to steal proprietary functions from Anthropic’s advanced Fable model. Anthropic made [the same accusations in February](https://www.anthropic.com/news/detecting-and-preventing-distillation-attacks).\n\nAdvocacy groups have also requested the White House take stronger action to ban the sale of AI system components, [specifically semiconductor chips](https://www.nextgov.com/artificial-intelligence/2026/04/experts-call-halt-ai-chip-exports-china-after-white-house-distillation-warning/413132/), to China.", "url": "https://wpnews.pro/news/intelligence-agencies-warn-of-chinas-large-scale-ai-model-distillation-efforts", "canonical_source": "https://www.nextgov.com/artificial-intelligence/2026/09/intelligence-agencies-warn-chinas-large-scale-ai-model-distillation-efforts/415851/", "published_at": "2026-09-08 21:52:00+00:00", "updated_at": "2026-09-08 22:29:00.166112+00:00", "lang": "en", "topics": ["ai-policy", "ai-safety", "ai-infrastructure"], "entities": ["National Security Agency", "Cybersecurity and Infrastructure Security Agency", "Federal Bureau of Investigation", "DeepSeek", "Moonshot AI", "Alibaba", "MiniMax", "StepFun"], "alternates": {"html": "https://wpnews.pro/news/intelligence-agencies-warn-of-chinas-large-scale-ai-model-distillation-efforts", "markdown": "https://wpnews.pro/news/intelligence-agencies-warn-of-chinas-large-scale-ai-model-distillation-efforts.md", "text": "https://wpnews.pro/news/intelligence-agencies-warn-of-chinas-large-scale-ai-model-distillation-efforts.txt", "jsonld": "https://wpnews.pro/news/intelligence-agencies-warn-of-chinas-large-scale-ai-model-distillation-efforts.jsonld"}}