The White House accused China-based entities of conducting “industrial-scale”
theft of US AI intellectual property via model distillation, according to a memo
by Michael Kratsios. The administration firms plans to share threat data with US
and consider measures to hold actors accountable. Council on Foreign Relations
expert Chris McGuire said Chinese firms use distillation to offset computing
gaps. US companies, including OpenAI and Anthropic, have raised similar
concerns.
