White House Accuses China Of ‘Industrial-Scale’ AI Model Copying
The White House has accused foreign entities, primarily based in China, of conducting large-scale efforts to replicate advanced American artificial intelligence models.
In a memo, Michael Kratsios said the campaigns involve the use of thousands of proxy accounts and sophisticated tools to extract sensitive capabilities from leading AI systems developed by U.S. firms.
He described the activity as a coordinated attempt to “systematically extract” expertise and innovation from American companies, raising concerns about intellectual property and national security.
At the centre of the allegations is a technique known as “distillation,” which allows developers to transfer knowledge from larger AI systems into smaller, more cost-efficient models. While commonly used in AI development, U.S. companies argue the method is being exploited to mimic proprietary systems.
Firms such as OpenAI and Anthropic have previously raised similar concerns. Anthropic has alleged that Chinese-based labs, including DeepSeek, attempted to extract capabilities from its models, while OpenAI has warned that some competitors are trying to replicate its technology.
The accusations come amid intensifying competition between the United States and China in the global race for AI dominance – a rivalry that has increasingly influenced trade and technology policy. Companies like Nvidia have been caught in the middle due to restrictions on the export of advanced chips.
Kratsios also warned that AI models developed through such methods may lack critical safety features, potentially increasing security risks if safeguards are removed during replication.
In response, a spokesperson for the Embassy of China in Washington, D.C. rejected the claims, stating that China’s technological progress is driven by its own innovation and international collaboration, while criticising what it described as unjustified restrictions on Chinese firms.
The administration of Donald Trump said it plans to step up cooperation with private companies, share intelligence on emerging threats, and explore measures to hold perpetrators accountable.
The issue is expected to remain a key flashpoint as both countries continue to compete for leadership in the rapidly evolving AI sector.
