U.S. State Department Issues Global Warning on Alleged AI Theft by Chinese Firms
The U.S. State Department has initiated a global campaign to highlight alleged intellectual property theft by Chinese companies, including AI startup DeepSeek, from American AI labs. According to a diplomatic cable seen by Reuters, the initiative aims to warn about the risks associated with using AI models derived from U.S. proprietary technology. The cable outlines concerns over the distillation process, where smaller AI models are trained using outputs from larger, more expensive models, potentially lowering costs but compromising security and performance. DeepSeek, which recently launched a new AI model adapted for Huawei chip technology, has not shared its developments with American engineers, instead providing early access to Chinese firms. The State Department's actions come amid heightened tensions between the U.S. and China over technological advancements and intellectual property rights. 
