US News

China Denies US Allegations of Malicious AI Model Distillation

Beijing has dismissed US claims that its artificial intelligence firms are illicitly extracting capabilities from American models, urging Washington to cease what it describes as unfounded accusations ahead of upcoming high-level diplomatic talks.

China Denies US Allegations of Malicious AI Model Distillation

The Chinese government has formally rejected allegations from United States security agencies that its domestic artificial intelligence companies are engaged in malicious efforts to extract capabilities from advanced American AI systems. Beijing described the claims as unfounded and urged Washington to halt what it characterized as smears against the Chinese technology sector.

The response from the Ministry of Foreign Affairs followed a joint cybersecurity advisory issued by the FBI, the National Security Agency, and the Cybersecurity and Infrastructure Security Agency. The US agencies alleged that Chinese developers have been distilling capabilities from leading American models since at least late 2024, potentially violating terms of service to accelerate their own technological progress.

Details of the US Cybersecurity Advisory

The joint US advisory identified several Chinese firms, including DeepSeek, Alibaba, Moonshot AI, and Z.AI, as participants in these activities. According to the report, these companies allegedly routed requests through multiple channels to gain unauthorized access to prominent models, such as OpenAI’s GPT, Google’s Gemini, Anthropic’s Claude, and xAI’s Grok. The US agencies further claimed that these firms utilized shared premium subscriptions to lower the costs of large-scale data extraction, describing the activity as an industrial-scale effort to bypass restrictions on frontier AI systems.