NSA Launches Biggest Overhaul in Decade With New AI, China and Global Intelligence Divisions The National Security Agency is preparing its most extensive internal restructuring in at least a decade, creating five new organisations dedicated to artificial intelligence, China, cybersecurity, combat support and global intelligence, according to current and former officials briefed on the plan presented to senior NSA leaders last week. The overhaul is the work of Gen. Joshua M. Rudd, the agency's 20th director, who was confirmed by the Senate in a 71-29 vote on 10 March and assumed the role on 20 March 2026. The restructuring follows a joint NSA, FBI and Cybersecurity and Infrastructure Security Agency advisory naming DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI, which accused the six Chinese AI companies of extracting billions of tokens from US models including Anthropic's Claude, OpenAI's GPT, Google's Gemini and xAI's Grok since late 2024. NSA Launches Biggest Overhaul in Decade With New AI, China and Global Intelligence Divisions The proposed reorganisation would create dedicated organisations for artificial intelligence, China, cybersecurity, combat support and global intelligence amid rising US concern over Beijing's AI capabilities The National Security Agency is preparing its most extensive internal restructuring in at least a decade, creating five new organisations dedicated to artificial intelligence, China, cybersecurity, combat support and global intelligence. Current and former officials briefed on the plan say it was presented to senior NSA leaders last week. The overhaul is understood to be the work of Gen. Joshua M. Rudd, the agency's director. It comes as Washington grows increasingly concerned about how quickly Beijing is trying to close the gap in artificial intelligence. Five Organisations, One Strategy Giving AI and China their own dedicated organisations would elevate those areas within the agency's proposed new structure. Combat support and global intelligence complete the five-way split, with each organisation expected to have dedicated leadership. The proposed structure would give each priority area a newly elevated mission director. It also signals that AI and China are receiving distinct and elevated attention within the agency rather than being handled solely through broader intelligence and cyber organisations. The China AI Threat Behind the Timing The restructuring comes days after the NSA, FBI and the Cybersecurity and Infrastructure Security Agency issued a joint advisory accusing six Chinese AI companies https://www.ibtimes.co.uk/us-agencies-accuse-chinese-ai-firms-extracting-us-ai-model-capabilities-1818601 of what the agencies called aggressive, malicious and targeted distillation activities at an industrial scale. The agencies named DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI. The advisory states that the firms extracted billions of tokens from US AI models, including Anthropic's Claude, OpenAI's GPT, Google's Gemini and xAI's Grok, since late 2024, and said the activity was likely carried out with Chinese government awareness. The allegations are contained in the US government advisory and do not represent judicial findings against the companies. The advisory also details evasive tactics it says the companies used, including multiple accounts, bulk subscriptions and proxy routing services used to bypass regional restrictions and evade detection. The allegations underscore growing concern in Washington that AI has become a frontline national security issue, coinciding with the push for a dedicated AI organisation within the NSA itself. A Career Built Outside Signals Intelligence Rudd assumed his current role as the 20th director of the National Security Agency on 20 March 2026. He also serves as the 5th Commander of U.S. Cyber Command and 15th Chief of the Central Security Service. Rudd's background is in Army Special Forces and senior joint command roles, rather than the signals-intelligence background associated with some previous NSA leaders. His previous position as deputy commander of U.S. Indo-Pacific Command also gave him experience in a region central to US strategic concerns over China. An Unconventional Pick Facing Scrutiny The Senate confirmed Rudd in a 71-29 vote on 10 March, ending nearly a year without a permanent director at the agency. Senator Ron Wyden raised objections during the process, arguing in his floor remarks that General Rudd did not have that experience in signals intelligence. Some former officials and China analysts have pointed to Rudd's earlier posting as deputy commander of U.S. Indo-Pacific Command as relevant background for China-focused work. A restructuring of this scale inside one of America's most secretive agencies would represent a significant organisational change, and its timing alongside the China AI advisory suggests that AI and China are receiving greater prominence in the agency's planning. The proposed restructuring would represent the NSA's most extensive organisational change in at least a decade, while the creation of dedicated AI and China organisations underscores the growing prominence of both issues in the agency's planning. For Rudd, confirmed by a comfortable margin but with public reservations about his signals-intelligence background, the reorganisation will be an early test of whether an unconventional leader can reshape an institution built on tradition. © Copyright IBTimes 2026. All rights reserved.