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U.S. warns Chinese AI firms copied models via distillation

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Story summary
  • U.S. officials accused Chinese AI firms, including DeepSeek and Alibaba, of maliciously copying U.S. models via industrial-scale distillation.
  • The NSA, FBI and CISA issued a joint advisory on September 8 warning of the threat.
  • U.S. officials said the practice could boost China’s military and cyber-attack capabilities.
  • China’s Ministry of Commerce called the advisory baseless and described distillation as a normal technique.