White House Raises Alarm Over Alleged AI Theft by Chinese Firms
The White House has warned of what it describes as large-scale efforts by foreign actors to extract and replicate American artificial intelligence (AI) technology, pledging closer collaboration with U.S. tech companies to counter the threat.
In an internal memo, Michael Kratsios, Director of the Office of Science and Technology Policy, said new intelligence suggests that entities “principally based in China” are targeting U.S. firms through coordinated campaigns.
According to the memo, these actors are using a technique known as “distillation” to mimic and reproduce AI systems developed by American companies. The process involves interacting extensively with AI tools to extract insights that can be used to build competing models.
Kratsios said the activity appears aimed at undermining U.S. research and gaining access to proprietary technology. In response, the administration outlined steps including increased intelligence-sharing with AI firms, improved coordination to detect threats, development of best practices to mitigate risks, and exploring accountability measures against those involved.
However, the memo did not specify concrete enforcement actions or name particular organisations.
A spokesperson for the Embassy of China in Washington, D.C. rejected the allegations, arguing that China’s technological progress is driven by domestic innovation and international collaboration. The spokesperson also criticised what it described as unfair restrictions on Chinese companies.
The issue of AI “distillation” has gained attention within the tech industry. Companies such as OpenAI and Anthropic have reported similar concerns, with Anthropic previously alleging that Chinese-based labs including DeepSeek, Moonshot AI, and MiniMax attempted to replicate its models through such methods.
OpenAI has also accused DeepSeek of copying aspects of its technology. The companies named have not publicly responded to the latest claims.
The debate comes amid intensifying global competition in AI development, with firms investing heavily in advanced models. DeepSeek, which launched its chatbot last year, drew attention for reportedly building its system at a fraction of the cost typically associated with large-scale AI development.
The issue is expected to remain a key topic in U.S.-China relations, particularly as Donald Trump is scheduled to visit China in May.
