DIGITAL LIFE
/https://i.s3.glbimg.com/v1/AUTH_59edd422c0c84a879bd37670ae4f538a/internal_photos/bs/2025/v/p/WrtzTzRB6D5HIATHrd1A/2025-11-20t061512z-1639912283-rc2zzhakl1n5-rtrmadp-3-china-dailylife.jpg)
US warns allies about China distilling AI models
The distillation of AI models has reignited tensions between Washington and Beijing, in a new chapter of a years-long technological dispute, after the US State Department sent a diplomatic cable to consular and diplomatic posts worldwide on April 25, 2026, according to a Reuters exclusive. The document instructs missions to warn allied governments about what Washington describes as systematic efforts by Chinese companies to extract American artificial intelligence technology. Companies named include DeepSeek, Moonshot AI, and MiniMax, and a separate request was sent directly to Beijing.
The diplomatic cable was sent a day after DeepSeek launched the V4 model on April 24. The Hangzhou-based startup has unveiled two variants: the V4-Pro, with 1.6 trillion total parameters and 49 billion active parameters per token, and the V4-Flash, a lighter version with 284 billion total parameters and 13 billion active parameters. Both models support a context window of one million tokens and were released under the MIT open-source license, according to technical documentation available on the Hugging Face platform.
The company claims that the V4-Pro rivals the best closed-source systems from OpenAI and Anthropic, namely GPT-5.4 and Claude Opus 4.6. According to independent analysis by Artificial Analysis, the V4-Pro leads open-source models in programming (LiveCodeBench: 93.5%), mathematics (IMOAnswerBench: 89.8%), and autonomous agent tasks (SWE-bench Verified: 80.6%). The open-license launch creates a contradiction that Washington has not directly addressed: any entity can legally study and adapt V4, raising questions about the effectiveness of a purely diplomatic response.
The White House memo and the legislative response...On April 23, a day before the diplomatic cable, the director of the White House Office of Science and Technology Policy (OSTP), Michael Kratsios, issued a memo accusing entities “primarily based in China” of conducting “deliberate, industrial-scale campaigns” to extract American frontier models, according to the Financial Times and confirmed by Reuters. The document commits the Trump administration to sharing information on extraction tactics with American AI companies and exploring accountability measures.
In Congress, the Deterring American AI Model Theft Act bill, introduced on April 15 by Representative Bill Huizenga and registered on the official GovInfo portal under reference H.R. 8283, proposes the creation of a public list of entities that carry out model extraction attacks, making them eligible for sanctions and inclusion on restricted entity lists. The bill also creates a mechanism for the State Department to collaborate with private industry in sharing best practices and analyzing attacks. On April 16, the chairman of the House Special Committee on China, John Moolenaar, accused Chinese laboratories of resorting to "unauthorized distillation attacks" because they lack sufficient chips to develop models independently [unverified information, requires editorial confirmation].
OpenAI warned Congress in February 2026 about the use of obfuscated proxy accounts created to extract responses from ChatGPT. Anthropic published a report, reported by VentureBeat, that identified approximately 24,000 fraudulent accounts associated with three Chinese companies, but with very different volumes: MiniMax generated more than 13 million interactions with the chatbot Claude, Moonshot AI 3.4 million, and DeepSeek around 150,000. This asymmetry, which the report does not explain, weakens the narrative of a coordinated operation between the three entities.
Both companies have a direct commercial and reputational interest in discrediting Chinese competitors, which does not invalidate the evidence but requires independent scrutiny. To date, this scrutiny has not been carried out by any verifiable external body.
The spokesperson for the Chinese Ministry of Foreign Affairs, Guo Jiakun, described the accusations as "totally unfounded" and a "slanderous smear campaign against the successes of the Chinese artificial intelligence industry," in statements quoted by Notícias ao Minuto. The Chinese embassy in Washington urged Washington to “respect the facts, abandon its prejudices, and cease its policy of technological containment.” No international judicial or regulatory body has analyzed or confirmed the allegations made by the American companies.
The dispute comes less than three weeks before the summit between Donald Trump and Xi Jinping, scheduled for May 14 and 15 in Beijing, according to the BBC and the South China Morning Post. The distillation of AI models thus enters the agenda of a bilateral relationship already marked by restrictions on chip exports, tariffs, and disputes over intellectual property. The question the technology sector is asking is straightforward: will the administration impose sanctions, or will it use this dossier as a bargaining chip in Beijing?
AI model distillation, a process where a smaller "student" model is trained to replicate the behavior of a larger, more complex "teacher" model, presents significant risks, ranging from ethical and security issues to threats to intellectual property. While useful for optimization, the technique has been exploited for malicious purposes.
Key dangers of AI model distillation(below):
-Intellectual property theft (distillation attacks): Distillation can be used to "steal" advanced models, bypassing the high cost of research and development. This undermines the competitive advantage of companies that have invested significant resources.
-National security risks: Illegally distilled models can be used to bypass security protections. This can enable the development of offensive cyberattacks or facilitate the use of AI to create biological weapons.
-Replication of biases and errors: If the "teacher" model has biases or contains errors, the distilled "student" model will inherit and often amplify these flaws, generating unsafe or discriminatory results.
-Loss of control and reliability: Industrial-scale distilled models may lack the safeguards of the original models, resulting in unstable and unreliable systems.
-Geopolitical issues and unfair competition: There are reports of Chinese companies using intermediary accounts to distill US models (such as Claude and Gemini), generating tensions and investigations into technological espionage.
Threat context: It is difficult to completely prevent distillation, as the basic function of a large language model (LLM) is to answer questions. Companies are focusing on layered security measures, such as API rate limiting and detection of suspicious query patterns.
by mundophone







:strip_icc()/i.s3.glbimg.com/v1/AUTH_e536e40f1baf4c1a8bf1ed12d20577fd/internal_photos/bs/2023/i/B/TcGMv0ToW5XzoOiVlK3g/gettyimages-1205539001.jpg)