Alibaba Group Holding LtdAccused of using distillation to steal AI knowledge, risking sanctions.

US security agencies have accused six leading Chinese AI companies, including DeepSeek, Moonshot AI, and Alibaba, of using distillation techniques to systematically extract knowledge from American AI models on an industrial scale, in order to train and develop their own models. The NSA, FBI, and CISA issued a joint statement on Tuesday stating that Chinese companies have been using this method since at least 2024 and have deliberately circumvented usage restrictions imposed by US companies to gain unauthorized access to their systems. The accusation comes just weeks before a summit between President Donald Trump and President Xi Jinping in Washington, which could heighten tensions between the world's two largest economies. US agencies have recommended that American AI developers take immediate protective measures. Meanwhile, OpenAI and Anthropic have previously expressed concerns about unauthorized access to their models, and Anthropic accused Alibaba in June of running a large-scale operation to illegally access its Claude model. The Trump administration announced in April that it would take additional measures to address such distillation practices, and US Treasury Secretary Scott Bessent warned in July that Chinese companies found to be involved in intellectual property theft could face sanctions.
Alibaba Group Holding LtdAccused of using distillation to steal AI knowledge, risking sanctions.
Astera Labs, Inc.Named as one of the six Chinese AI companies accused of IP theft.
Named as one of the six Chinese AI companies accused of IP theft.
Mentioned as having accused Alibaba of illegal access to its Claude model.
Mentioned as having previously expressed concerns about unauthorized access.