FBI, NSA warn Chinese AI companies like DeepSeek and Alibaba are reportedly carrying out 'industrial-scale' distillation campaigns to boost their models

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  • CISA, NSA, FBI warn Chinese AI firms of industrial‑scale knowledge distillation
  • Companies like DeepSeek, Moonshot, Alibaba allegedly extracted billions of tokens from US frontier models
  • Advisory urges detection of malicious prompts, deceptive responses to distillation, and cross‑provider intelligence sharing

Chinese AI companies’ core development strategy is to steal proprietary functionalities and capabilities from their US counterparts, law enforcement agencies have warned.

The US Cybersecurity and Infrastructure Security Agency (CISA) has published a new security advisory, drafted jointly with the National Security Agency (NSA) and the Federal Bureau of Investigation (FBI), warning American AI companies about an ongoing “aggressive, malicious, and targeted distillation activities at an industrial scale,” and sharing recommended mitigation steps.

Knowledge distillation

IBM defines knowledge distillation as a “machine learning technique that aims to transfer the learnings of a large pre-trained model, the ‘teacher model,’ to a smaller ‘student model’.” It is used in deep learning as a...

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