How China is threatening US national security through AI theft: Explained

Anthropic and OpenAI warn that Chinese companies are copying their advanced AI technology without permission, threatening US national security and AI leadership.

Anthropic accused Alibaba of using fake accounts to extract 28.8 million outputs from its Claude chatbot for distillation, improving Alibaba's AI systems.

OpenAI accused Chinese AI company DeepSeek of free-riding on its technology, while Anthropic also alleged DeepSeek, Moonshot, and Minimax used distillation without permission.

Distillation is legal when used on own systems but illegal when a rival copies another's AI without permission, according to former White House CIO Theresa Payton.

Chinese AI companies offer powerful services at lower prices due to these practices, threatening the global AI race.