U.S. national security agencies are warning that China-based artificial intelligence companies are conducting large-scale efforts to extract capabilities from advanced American AI models, raising new concerns about technology security and the global AI race.

NSA, FBI and CISA Issue AI Security Warning

The National Security Agency, FBI and Cybersecurity and Infrastructure Security Agency released a joint cybersecurity advisory on September 8 saying China-based companies are using AI model distillation to obtain restricted capabilities from U.S. frontier models.

Model distillation is a legitimate technique used in AI development, but U.S. officials say the activities described in the advisory involve systematic attempts to reproduce proprietary AI capabilities without making comparable investments in computing resources, electricity, research and development.

AI Competition Becomes a National Security Issue

The warning comes as U.S.-China competition over artificial intelligence intensifies. American officials are increasingly concerned that advanced AI capabilities could provide advantages in cybersecurity, intelligence and other sensitive technologies.

China has rejected U.S. accusations involving AI model distillation, calling the claims unfounded and arguing that its AI progress comes from domestic innovation.

The dispute adds another layer to the rapidly developing global AI technology race, with governments and technology companies facing growing pressure to protect proprietary models while continuing to advance artificial intelligence innovation.