US accuses China of “industrial-scale” AI theft. China says it’s “slander.” ↗
The Financial Times reports the US government believes foreign entities, largely based in China, are conducting industrial-scale distillation campaigns against US frontier AI systems. Firms like Google, Anthropic, and OpenAI have cited attempts to clone or extract AI capabilities through mass-bid and account-based fraud. The White House OSTP director reportedly warned of ongoing distillation efforts, prompting a potential regulatory response.