The NSA, CISA, and FBI are accusing (PDF) several Chinese AI companies of carrying out "industrial-scale" distillation campaigns against leading U.S. models such as ChatGPT, Claude, Gemini, and Grok. Since at least 2024, the companies have allegedly routed millions of requests across accounts, APIs, proxies, cloud providers, and third-party aggregators to extract capabilities for their own models. "China-based artificial intelligence companies are conducting systematic extraction of proprietary functionalities and capabilities of U.S. AI companies' models through industrial-scale knowledge distillation campaigns that form the core -- not merely a supplement -- of their AI development strateg...