BBS:      TELESC.NET.BR
Assunto:  Extraction and distillation: US State Department upgrades AI thef
De:       Mike Powell
Data:     Mon, 27 Apr 2026 09:13:04 -0500
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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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