China and the US trade barbs over AI model distillation

Three major US government agencies have sounded the alarm on "industrial-scale" extraction of data from American AI models by Chinese companies. The joint advisory, issued by the FBI, NSA, and CISA, claims firms like DeepSeek, Alibaba, and Moonshot AI are systematically "distilling" capabilities from models like GPT, Claude, and Gemini to train their own systems. The agencies describe the practice as a core development strategy, involving the extraction of billions of tokens across millions of...