US to Partner with AI Firms to Counter Chinese Tech Theft

The US administration announced it will step up cooperation with AI companies to combat Chinese-led "distillation" campaigns stealing tech advancements. White House official Michael Kratsios claimed foreign entities, principally based in China, are exploiting US firms to access proprietary information. The US plans to share tactics, develop best practices, and explore accountability measures against such practices. A Chinese embassy representative rejected the allegations, stating China's tech development results from its own efforts and international cooperation.

Key Points: US to Partner with AI Firms Against Chinese Tech Theft

  • White House to share tactics with AI companies
  • Distillation campaigns allow foreign entities to steal proprietary AI info
  • US plans best practices to identify and mitigate attacks
  • Anthropic previously accused three Chinese firms of illegal extraction
2 min read

US administration to work with AI firms to counter Chinese-led 'stealing' of tech advancements

US administration to cooperate with AI firms to combat Chinese-led "distillation" campaigns stealing tech advancements, White House official says.

"As methods to detect and mitigate industrial-scale distillation grow more sophisticated, foreign entities who build their AI capabilities on such fragile foundations should have little confidence in the integrity and reliability of the models they produce. - Michael Kratsios"

New Delhi, April 24

US administration said it will step up cooperation with US artificial intelligence companies to combat "industrial‑scale campaigns" by "foreign entities, principally based in China," to steal advancements in technology, a report has said.

Michael Kratsios, director of the White House Office of Science and Technology Policy, in an internal memo claimed new information that foreign entities were exploiting US firms through a process known as "distillation," a report from BBC said.

Kratsios claimed that the Chinese design aims to systematically undermine American research and development and access proprietary information.

To counter these practices, White House will share more information with US AI companies about "tactics employed and actors involved" in distillation campaigns.

It also plans to improve coordination with companies to fight the attacks and develop a set of "best practices to identify, mitigate, and remediate" them. Further, it will "explore" ways to hold these foreign actors accountable for such distillation.

Through distillation campaigns, firms usually operate many thousands of individual accounts for a given AI chatbot or tool, allowing them to appear as normal users.

"Those accounts then undertake more coordinated attempts to "jailbreak" or otherwise expose information about AI models that is not supposed to be made public, which is saved and applied to their own AI model building and training," the report explained.

"As methods to detect and mitigate industrial-scale distillation grow more sophisticated, foreign entities who build their AI capabilities on such fragile foundations should have little confidence in the integrity and reliability of the models they produce," it quoted Kratsios as saying.

A representative of China's US embassy in Washington DC rejected the allegation, saying China's technological development was the result of "its own dedication and effort as well as international cooperation".

United States-based artificial intelligence firm Anthropic had in March accused three Chinese unicorns- DeepSeek, Minimax and Moonshot AI - of having illegally extracted capabilities from its Claude model to advance their own systems.

- IANS

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Reader Comments

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Neha E
Interesting how the US is now alarmed about "distillation" when they themselves have been using Chinese data for training models. Remember when they scraped Baidu and Weibo? Pot calling kettle black! 😏
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Arun Y
While the US and China fight over AI dominance, India should see this as our opportunity! We have the second largest English-speaking developer base. Instead of getting dragged into their rivalry, we should build our own foundational models. NASSCOM and government should step up!
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Priyanka N
Honestly, I'm worried about the environmental impact. These AI models consume massive amounts of water and electricity. Whether it's US, China, or India developing AI, we need to ensure sustainability. Our data centers in Chennai are already water-stressed.
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Vishal D
The article mentions DeepSeek, Minimax, and Moonshot AI being accused. These are actually innovative Chinese startups. Accusations without solid evidence is just US trying to maintain tech hegemony. India should collaborate with both blocs equally. 🙏
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Sneha F
As someone working in AI, "distillation" is common practice globally. Even US companies distill from each other's models. The issue is when it's done at industrial scale with malicious intent. But making it solely about China is hypocritical when US firms do similar things to each other.
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