U.S. Agencies Accuse Chinese AI Firms of Unauthorized Distillation of U.S. Frontier Models

U.S. agencies allege Chinese AI firms engaged in large-scale distillation attacks to extract proprietary capabilities from U.S. frontier models like Claude, GPT, Gemini, and Grok. The operations involved unauthorized API access, proxy networks, and strategic distribution across global platforms to evade detection.

U.S. cybersecurity and intelligence agencies have accused China-based artificial intelligence (AI) companies of conducting "systematic extraction" of proprietary functionalities and capabilities of American frontier models through distillation attacks.

The activity has been described as occurring at an industrial-scale and one that forms the "core" of their AI development strategy, according to

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