"Michael Kratsios, director of the Office of Science and Technology Policy, stated that the US has evidence that foreign entities, primarily in China, are running industrial-scale distillation campaigns to steal American AI. He emphasized the need for action to protect American innovation."
"Distillation is a technique that does not require stealing model weights or breaking into servers. Instead, it involves feeding queries to a frontier AI model, collecting responses, and training a cheaper rival model that approximates the original's capabilities."
The White House Office of Science and Technology Policy released a memo accusing China of conducting industrial-scale theft of American AI models. The memo commits to sharing intelligence with US AI companies and exploring accountability measures. OpenAI and Anthropic have accused DeepSeek and others of creating fraudulent accounts to distill AI models. The Deterring American AI Model Theft Act was introduced on April 15. The memo's release coincides with a planned Trump-Xi summit, emphasizing AI protection as a national security issue.
Read at TNW | China
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