White House Moves to Curb Chinese 'Distillation' of U.S. AI
Michael Kratsios issued a memo accusing entities 'principally based in China' of industrial-scale 'distillation' of U.S. AI models and pledged coordinated defenses, information-sharing, and accountability measures.

White House memo claims mass AI theft by Chinese firms

Trump administration vows crackdown on Chinese companies 'exploiting' AI models

Trump administration vows crackdown on Chinese companies 'exploiting' AI models made in US
Trump administration vows crackdown on Chinese companies ‘exploiting’ AI models made in U.S.
Overview
Michael Kratsios, the president's chief science and technology adviser, wrote in a memo that foreign entities "principally based in China" are undertaking industrial-scale campaigns to "distill" U.S. AI models, according to the memo.
The memo arrives as China narrows the AI gap, and Stanford University's Institute for Human-Centered AI said the U.S.-China gap in top AI model performance has "effectively closed."
The House Foreign Affairs Committee offered unanimous bipartisan support for a bill to identify foreign actors that extract "key technical features" of closed-source U.S. AI models and to punish them, including with sanctions.
Anthropic said it found over 16 million exchanges with its Claude chatbot generated through approximately 24,000 fraudulent accounts, which it described as part of distillation campaigns.
Kratsios said the administration will share information with U.S. AI companies, coordinate defenses, develop best practices to mitigate distillation, and explore ways to hold foreign actors accountable.
Analysis
Center-leaning sources frame the story as a U.S.-China competitive threat, emphasizing national security and intellectual property concerns. Editorial choices—using 'exploiting' in the headline, foregrounding Kratsios' and Rep. Huizenga's accusations, citing a Stanford report that the gap 'effectively closed,' and briefly noting a Chinese embassy rebuttal—prioritize U.S. perspectives.