Close Menu
NCIJ Network NCIJ Network
    What's Hot

    Why MI5 swapped Boy Scouts for Girl Guide messengers during WWI

    September 9, 2026

    Western Hawaii islands survey damage after Hurricane Lowell passes by | Hawaii

    September 9, 2026

    Farage is clearly struggling – I saw that for myself. But his legacy will be a poison that runs deep | Andy Beckett

    September 9, 2026
    Facebook X (Twitter) Instagram
    Trending
    • Why MI5 swapped Boy Scouts for Girl Guide messengers during WWI
    • Western Hawaii islands survey damage after Hurricane Lowell passes by | Hawaii
    • Farage is clearly struggling – I saw that for myself. But his legacy will be a poison that runs deep | Andy Beckett
    • Thiel-backed start-up to mass-produce ‘deep strike’ missiles in Europe and US
    • How to watch Apple’s September 9th launch event
    • US Agencies Warn China Is Systematically Extracting Frontier AI Capabilities
    • UK Crime Agency Warns of ‘Innovative Use’ of Crypto by Launderers
    • Colorful Himalayan pheasants face a less rosy future under human pressure
    • About
      • Our Team
      • Editorial Policy
      • Editorial Independence
      • International Support
    • Trust & Standards
      • AI Usage Policy
      • Conflict of Interest Policy
      • Corrections Policy
      • Ethics Policy
      • Fact-Checking Policy
      • Source Protection
    • Get Involved
      • Guide for Sources
      • Support Independent Journalism
    • Legal
      • Cookie Policy
      • Privacy Policy
      • Terms of Use
    Facebook X (Twitter) Instagram
    NCIJ Network NCIJ Network
    Wednesday, September 9
    • Home
    • World
    • Ai
    • Business
    • Politics
    • Health
    • Crypto
    • Science
    • Technology
    • Cybersecurity
    • Defense & Security
    • Economy
    • Energy
    • Europe
    • More
      • Fact Check
      • Investigations
      • Opinion & Analysis
      • Environment
    NCIJ Network NCIJ Network
    Home»Cybersecurity

    US Agencies Warn China Is Systematically Extracting Frontier AI Capabilities

    NCIJ NETWNCIJ NETWORKBy NCIJ NETWNCIJ NETWORKSeptember 9, 2026 Cybersecurity No Comments4 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The NSA, CISA and FBI say that China-based AI companies are using the distillation process against US frontier models. “Likely with Chinese government awareness, DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens across millions of exchanges/requests from U.S. frontier AI models, including variants of Claude, GPT, Gemini, and Grok, since at least late 2024,” they say.

    The result doesn’t simply improve China’s AI models, it also threatens the existing US technology leadership. Between late 2024 and mid 2025, DeepSeek distilled training data and capabilities from Claude, Gemini, GPT-4 and GPT-5, and Grok 4 to train its R1 and V3 models.

    The knowledge distilled included, but was not limited to, API rule-driven tasks, agentic functions, Q&A optimization, supervised fine-tuning optimization, and creative and occupational writing optimization.

    Moonshot undertook a similar large scale distillation, including the extraction of significant Claude Fable 5 data to improve its Kimi-K3 model; and GPT-4o data to improve its Kimi-K2 model.

    Such distillation was repeated across all the named Chinese AI systems and is chronicled in detail within the agencies’ report. The tactics, techniques, and procedures (TTPs) used by the Chinese organizations in their distillation are mapped to the MITRE ATLAS framework providing the TTP Title, its ID, and a description.

    This mapping provides a detailed explanation of the distillation process from resource development through access, execution, discovery, AI attack staging, collection, exfiltration and impact. The impact (on US frontier model developers), for example, is described as financial harm, undermining competitive advantages, and representing “a strategic economic threat to fair technological competition and U.S. technological leadership”.

    Advertisement. Scroll to continue reading.

    However, the authoring agencies also note the Chinese companies leverage additional techniques not present in MITRE ATLAS, thus distinguishing the process from an opportunistic exploitation. This is a planned and well-resourced national level action.

    The novel TTPs are described as regional restriction evasion and subscription exploitation; centralized request routing infrastructure, automated request metadata sanitization; and systematic quota and cost optimization.

    Mitigations proffered by the agencies should be coordinated across the broader US AI ecosystem, including cloud providers, API aggregators, and infrastructure providers. Recommendations include purely defensive actions (such as behavioral detection and monitoring, including examples of the behavior that could be detected), to more aggressive strike back responses. For the latter, the agencies suggest that “Employing targeted changes in response to high-confidence malicious distillation requests can impose meaningful costs on knowledge distillation campaigns.”

    Sharing information about distillation campaigns is of course recommended. “Multi-source correlated activity enables more confident attribution of malicious knowledge distillation campaigns, justifying response degradation with lower-to-no legitimate user risk.”

    The principle of differential privacy is also recommended. It could be implemented by “adding calibrated noise to model outputs and preventing malicious actors from extracting training data membership information and other sensitive model information, such as decision boundaries or signals that could help reconstruct private data.”

    The purpose of the report is to alert all AI stakeholders that Chinese AI companies are systematically and, on an industrial scale, effectively stealing US technological leadership. The threat is not directly to the enterprise use of AI (although adversarial knowledge of how an AI defense might respond could potentially allow a more sophisticated and evasive attack). The threat is more directly to US technology leadership and consequently to the US economy and could potentially lead to a national security issue.

    Related: Trump Administration Vows Crackdown on Chinese Companies ‘Exploiting’ AI Models Made in US

    Related: Encrypted Prompts Bypass AI Safety Guardrails in Grok and Gemini

    Related: Nuclear-Sabotage Malware Benchmark Trips Up Most Frontier AI Models

    Related: Frontier AI: Six Questions Every Enterprise Should Ask Security Vendors

    agencies capabilities China Extracting Frontier systematically warn
    NCIJ NETWNCIJ NETWORK
    • Website

    Keep Reading

    SpyCloud 2026 Identity Threat Report Finds Non-Human Identities Are Now the Leading Path into the Enterprise

    EU unveils ‘buy European’ public procurement rules to counter China | European Union

    New cPanel Flaw Lets a Hosting Account With Mail Privileges Run Code as Root

    New Phishing Attack Creates Malicious Pages Inside the Victim’s Browser

    Chrome V8 Zero-Day Exploited in the Wild Enables Code Execution Inside Sandbox

    BengalSEO Poisons Bing Search Results to Deliver MayaBot and Tech Support Scams

    Add A Comment
    Leave A Reply Cancel Reply

    Editors Picks

    Why MI5 swapped Boy Scouts for Girl Guide messengers during WWI

    September 9, 2026

    Western Hawaii islands survey damage after Hurricane Lowell passes by | Hawaii

    September 9, 2026

    Farage is clearly struggling – I saw that for myself. But his legacy will be a poison that runs deep | Andy Beckett

    September 9, 2026

    Thiel-backed start-up to mass-produce ‘deep strike’ missiles in Europe and US

    September 9, 2026
    Latest Posts

    Justice Dept. Subpoenas Times Freelancer in Effort to Identify Sources

    August 1, 2026

    Michigan joins Minnesota in reporting cyberattacks, with FBI investigating | Cybercrime News

    August 1, 2026

    Tiny aerosol particles could supercharge tropical storm clouds

    August 1, 2026

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    NCIJ Network is an independent digital news platform delivering trusted investigative journalism, European and global news, in-depth analysis, and fact-based reporting with accuracy, transparency, and integrity.

    Facebook X (Twitter) Instagram Pinterest YouTube

    Why MI5 swapped Boy Scouts for Girl Guide messengers during WWI

    September 9, 2026

    Western Hawaii islands survey damage after Hurricane Lowell passes by | Hawaii

    September 9, 2026

    Farage is clearly struggling – I saw that for myself. But his legacy will be a poison that runs deep | Andy Beckett

    September 9, 2026

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Type above and press Enter to search. Press Esc to cancel.