Sep 9, 2026
The FBI, NSA, and CISA issued a joint alert accusing major Chinese AI companies including DeepSeek, Moonshot AI, and Alibaba of conducting industrial-scale campaigns to extract proprietary knowledge from American AI models through a technique called distillation.
White House official Michael Kratsios claimed Moonshot accessed restricted Nvidia GB300 processors in Thailand and distilled its Kimi K3 model from Anthropic's Fable. Treasury Secretary Scott Bessent said sanctions remain on the table against Chinese AI companies over alleged IP theft.
Apple is evaluating technology from Silicon Valley startup PrismML that can compress large AI models to run directly on iPhones. The startup has demonstrated its compression technology by shrinking Alibaba's Qwen 3.6 language model to run on the iPhone 17 Pro.
White House science advisor Michael Kratsios accused China-based entities of conducting 'industrial-scale' campaigns to copy frontier AI models from US companies through distillation techniques. The Trump administration is moving toward countermeasures.
Rival AI companies OpenAI, Anthropic, and Google have begun collaborating to prevent Chinese competitors from extracting results from cutting-edge U.S. AI models, marking an unprecedented cooperation among typically competing firms.
Google released TurboQuant, a compression algorithm that reduces large language model memory usage by at least 6x while improving performance, targeting AI inference cost reduction. The announcement caused significant market impact, with memory chip maker stocks reportedly declining.