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White House Accuses China of Industrial-Scale Theft of American AI Models

Quiver Data Analyst

The White House accused foreign entities primarily based in China of running industrial-scale campaigns to extract capabilities from American artificial intelligence models, according to a memo from Office of Science and Technology Policy Director Michael Kratsios and a statement he posted on X. The administration said it plans to take action to protect U.S. AI innovation and counter unauthorized model distillation efforts.

  • A White House memo says foreign actors are using large numbers of proxy accounts and jailbreaking techniques to distill U.S. frontier AI systems.
  • The administration said these campaigns are designed to extract capabilities and proprietary information from American models.
  • The memo states that unauthorized distillation can enable lower-cost competing products while stripping away security protocols.
  • The White House said lawful AI distillation remains part of a competitive ecosystem, but industrial-scale theft is unacceptable.
  • The memo calls for federal agencies to work with private industry on best practices to identify, mitigate, and remediate such activity.
  • The administration also said it is exploring measures to hold foreign actors accountable.

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Editor’s Note: This is a developing story. This article may be updated as more details become available.

About the Author

Matthew Kerr is a data analyst at Quiver Quantitative, with a focus on single-stock research and government datasets. Prior to joining Quiver, Matthew was an analyst intern at BlackRock.

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