Summary

US law-enforcement and intelligence officials alleged that companies including DeepSeek, Moonshot AI and Alibaba used distillation to train their own systems from American models. The statement said the activity likely had Chinese government awareness and could improve military and cyber capabilities, claims Beijing rejected.

Why it matters

The allegations escalate the strategic conflict over model access, intellectual property and national-security controls. They could accelerate restrictions on model accounts, inference access and cross-border AI services.

Sources