U.S. security agencies are accusing six Chinese artificial intelligence companies, including DeepSeek, Alibaba and Moonshot AI, of using American frontier models at industrial scale to help train their own systems.
The NSA, FBI and CISA said Tuesday that these companies extracted billions of tokens across millions of requests from models including Claude, GPT, Gemini and Grok since at least late 2024, often using proxy services and multiple accounts to avoid detection.
The agencies called the practice malicious knowledge distillation and said it likely occurred with the Chinese government’s awareness.
Distillation is a common way to train AI, where developers ask a more powerful model large numbers of questions, collect its answers, and use those outputs to improve another model.
U.S. agencies say the Chinese companies took that much further, sending millions of carefully designed requests to American models to copy their coding, math and reasoning abilities while using multiple accounts and proxy services to avoid detection and usage limits.
Moonshot is the company behind Kimi K3, the open-weight model that topped Anthropic and OpenAI on a widely watched coding benchmark in July and briefly triggered a broader AI selloff.
