NSA and Others Warn China-Based AI Companies are Distilling U.S. Frontier AI Models

The NSA, FBI, and CISA warn that China-based AI companies are using industrial-scale distillation techniques to extract proprietary functionalities from U.S. frontier AI models, accelerating their AI advancements while bypassing costly R&D. This activity enhances Chinese military and cyberattack capabilities, posing significant national security risks for the U.S. and its allies.

This Wire brief sits within Fusion42's coverage of AI Infrastructure, and 2 sources have reported it.