US Alleges Large-Scale AI Model Distillation by China (thenextweb.com)

• China accused of extracting intellectual property from Western foundation models.
• Industrial-scale use of distillation to bridge tech capability gaps.
• US preparing to share technical intelligence with EU partners.

"The US has formally accused China of engaging in industrial-scale model distillation, a process where smaller models are trained using the outputs of more advanced Western AI systems. This tactic allows China to bypass technical restrictions and acquire high-end intellectual property effectively. The US government intends to share specific threat intelligence with European counterparts to mitigate risks to global technological resilience and intellectual property protections."