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  • Extraction and distillation: US State Department upgrades AI thef

    From Mike Powell@1:2320/105 to All on Mon Apr 27 09:13:04 2026
    Extraction and distillation: US State Department upgrades AI theft
    accusations to target Chinas Deepseek, Moonshot AI and MiniMax

    Date:
    Mon, 27 Apr 2026 13:13:38 +0000

    Description:
    The State Department says Chinese AI companies are 'distilling' US AI models.

    FULL STORY
    The US State Department has accused Chinese AI companies of stealing the intellectual property of US artificial intelligence models.

    The White House recently accused China of systematically distilling and extracting US AI models , but is now directly accusing Chinese companies. A new cable issued a global warning and directly accused Chinese AI companies such as Deepseek, Moonshot AI and MiniMax of distilling US AI models to produce their own models. The State Department says the cable was
    issued to warn of the risks of utilizing AI models distilled from U.S. proprietary AI models, and lay the groundwork for potential follow-up and outreach by the U.S. government.

    AI models require large amounts of high quality data to train, but it is possible to distill a smaller model from a large one. The smaller model is trained using the outputs of the larger model, significantly reducing the
    cost of its production.

    The Chinese Embassy in Washington previously denied the accusations, stating that Beijing attaches great importance to the protection of intellectual property rights.

    Chinese companies have released a number of powerful, low-cost AI models that have disrupted the AI market - most notably the release of Deepseeks DeepSeek-V3 and DeepSeek-R1 models that rivalled their ChatGPT counterparts but with a significant reduction in cost and computing power.

    Chinese AI companies Moonshot AI and MiniMax were also mentioned in the
    cable, which requests diplomatic staff around the world raise concerns over adversaries extraction and distillation of U.S. A.I. models, with their foreign counterparts.

    US President Donald Trump is due to meet Chinese President Xi Jinping in May 2026, and the latest accusations will likely raise tensions between the two leaders.

    Link to news story: https://www.techradar.com/pro/extraction-and-distillation-us-state-department- upgrades-ai-theft-accusations-to-target-chinas-deepseek-moonshot-ai-and-minima x

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    * Origin: Capitol City Hub (1:2320/105)