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Homeland Security Warns China’s Industrial-Scale AI Distillation

By Drooid · Sep 23, 2026, 3:26 AM UTC · How we work

Summary

Story summary

China uses knowledge distillation to copy U.S. AI models and release free open-source alternatives.
U.S. Department of Homeland Security warned Chinese firms are conducting industrial-scale knowledge distillation against frontier models.
Chinese lab released the DeepSeek model in 2025, showing competition with cutting-edge American AI using far fewer resources.
U.S. experts say Washington should close chip-export loopholes, blacklist deceptive foreign labs, and boost domestic open-source AI development.

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Story summary

China uses knowledge distillation to copy U.S. AI models and release free open-source alternatives.
U.S. Department of Homeland Security warned Chinese firms are conducting industrial-scale knowledge distillation against frontier models.
Chinese lab released the DeepSeek model in 2025, showing competition with cutting-edge American AI using far fewer resources.
U.S. experts say Washington should close chip-export loopholes, blacklist deceptive foreign labs, and boost domestic open-source AI development.