US State Department escalates AI security concerns against Chinese firms. The department has issued a global diplomatic directive warning allied nations about alleged intellectual property theft by Chinese AI companies, particularly DeepSeek. The cable instructs diplomatic posts worldwide to alert foreign counterparts about what the US characterizes as systematic extraction and distillation of American AI models. Distillation involves training smaller AI models using outputs from larger ones to reduce development costs. OpenAI previously warned lawmakers that DeepSeek specifically targeted major US AI firms to replicate their models. China's embassy rejected these accusations as baseless attacks on its AI industry development.
