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 plans to share threat data with US firms 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.

2026-04-23

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 plans to share threat data with US firms 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.