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White House memo claims mass AI theft by Chinese firms

April 24, 2026

The White House has announced plans to strengthen collaboration with American AI companies to counter what it describes as systematic theft of AI technology by foreign entities, primarily from China, through a technique called "distilling. " This process involves creating thousands of fake user accounts to extract proprietary information from AI systems and replicate advanced models developed by US firms. China's embassy has rejected these allegations, asserting that Chinese AI development results from legitimate domestic innovation and international cooperation.

Who is affected

  • US artificial intelligence firms and companies (specifically mentioned: OpenAI and Anthropic)
  • Chinese AI laboratories (specifically named: DeepSeek, Moonshot, and MiniMax)
  • Michael Kratsios, Director of Science and Technology Policy
  • The White House administration
  • China's US embassy in Washington DC
  • American researchers and developers in AI technology

What action is being taken

  • The White House is working more closely with US artificial intelligence firms to combat distillation campaigns. Leading AI companies like OpenAI and Anthropic are dealing with distillation activity and detecting these attempts. Methods to detect and mitigate industrial-scale distillation are growing more sophisticated.

Why it matters

  • This issue is significant because foreign entities are systematically undermining American research and development by stealing proprietary AI information through distillation campaigns. The theft threatens US technological leadership and competitive advantage in AI development, as adversaries can replicate technology costing hundreds of billions of dollars for only a fraction of that investment. The integrity and reliability of AI models built on stolen foundations is questionable, which has implications for global AI development and international technology competition.

What's next

  • US President Donald Trump is expected to visit China in May. DeepSeek is expected to soon release a new version of its AI model.

Read full article from source: BBC