Trump Accuses China of AI Model Theft

The Trump administration has accused Chinese entities of engaging in "industrial-scale campaigns" to extract capabilities from U.S. artificial intelligence (AI) models, according to a memo released by Michael Kratsios, the president's chief science and technology adviser.

In the memo, Kratsios alleged that foreign actors, principally based in China, are using a process called "distillation" to copy AI technology developed by U.S. companies. The administration plans to work with American AI firms to identify such activities, build defenses, and explore measures to punish offenders.

The Chinese embassy in Washington denied the allegations, stating that China opposes "the unjustified suppression of Chinese companies by the U.S." and emphasized its commitment to promoting scientific and technological progress through cooperation and protecting intellectual property rights. The embassy spokesperson also noted that China's development is a result of its own dedication and effort as well as international cooperation.

According to multiple reports, leading AI companies like OpenAI and Anthropic have accused Chinese firms such as DeepSeek, Moonshot, and MiniMax of engaging in distillation campaigns to copy their models. The House Foreign Affairs Committee has also offered bipartisan support for a bill that would set up a process to identify foreign actors engaged in model extraction attacks and punish them with measures including sanctions.

In Beijing, China's Foreign Ministry spokesperson Guo Jiakun told reporters Friday that the U.S. claims are groundless and were smearing the achievements of China's artificial intelligence industry. "China firmly opposes this. We urge the U.S. to respect facts, discard prejudice, stop suppressing China's technological development, and do more to promote scientific and technological exchange and cooperation between the two countries," he said.

The U.S. State Department has ordered a global push to bring attention to what it says are widespread efforts by Chinese companies, including AI startup DeepSeek, to steal intellectual property from U.S. artificial intelligence labs. The diplomatic cable instructs diplomatic staff to speak to their foreign counterparts about "concerns over adversaries' extraction and distillation of U.S. A.I. models." A separate demarche request and message has been sent to Beijing for raising with China.

DeepSeek, the Chinese startup whose low-cost AI model stunned the world last year, launched a preview of a highly anticipated new model adapted for Huawei chip technology on Friday, underlining China's growing autonomy in the sector. The State Department, DeepSeek, and the Chinese Embassy in Washington did not immediately respond to requests for comment.