US Agencies Issue Joint Advisory on Chinese AI Firms' Industrial-Scale Model Distillation

The NSA, FBI, and CISA have released a joint cybersecurity advisory accusing Chinese artificial intelligence companies, including DeepSeek and Moonshot AI, of conducting industrial-scale distillation campaigns against American frontier AI models. This technique allows less capable models to learn from more powerful ones without direct access to training data or code, effectively replicating capabilities while circumventing export controls. The advisory recommends that US AI providers subtly alter responses to high-confidence malicious distillation requests.