US Accuses China of Industrial-Scale AI Theft. China Calls It Slander.

Trump-Xi Summit May Be Rocked by US Mulling Huge Sanctions.

TL;DR

The US is planning to crack down on China's alleged "industrial-scale theft of American artificial intelligence labs’ intellectual property."
AI firms like OpenAI, Google, and Anthropic have accused Chinese companies of using "distillation" to steal IP and clone AI models.
A White House memo warns that China is engaged in deliberate campaigns to distill US frontier AI systems using proxy accounts and jailbreaking techniques.
Congress is considering legislation to treat model extraction as industrial espionage and impose severe penalties.
China has dismissed the accusations as "pure slander," asserting its commitment to cooperation and IP rights.
The accusations surface ahead of a meeting between Donald Trump and Chinese President Xi Jinping, potentially impacting their discussions.

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Yann LeCun

The salvation is Project Tapestry

https://t.co/5MOgouVplV

clem 🤗 reposted

Harry Stebbings

“We have a crisis of open source models in the Western world.

Outside of China, there are no good open source models. We don't even have any in the US now.

The talent, the capital and the focus to be best-in-class at pre-training, mid-training, post-training is an extremely scarce skillset.

The answer for a lot of countries may just be to take an open weights model from China, post-train or fine-tune their own version, and have that be what they start from." @EverettRandle

Why does the West have such poor open source models and is it a national security threat to rely on open-source Chinese models @demishassabis @ylecun @aidangomez @lilianweng @janleike

Elon Musk reposted

Peter H. Diamandis, MD

Alibaba allegedly ran 28.8 million fraudulent API exchanges across 25,000 fake accounts to steal Claude's intelligence. If confirmed, it's the largest AI model theft ever attempted. The same week, the White House restricted GPT 5.6 to 20 companies, OpenAI delayed its IPO, and Neuralink announced it may attempt brain-to-brain telepathy this year.

-- GPT 5.6 launches in three tiers: Sol, Terra, Luna all throttled by the White House.

-- Chinese proxy services offer Western frontier models at 90% discount. The trade: your reasoning traces get harvested for distillation.

-- OpenAI won't IPO below $1 trillion. Revenue is at $40–50B annually but they're burning $26B.

-- Elon's endgame for Neuralink is I/O layer for the singularity, allowing humans to couple with AI directly.

clem 🤗 reposted

Xiaoyin Qu

if US bans open source because China is leading, then

1. impossible to enforce(you just need to download a zip for weights)

2. Increases the cost of using AI for US companies and consumers, while China leads in enterprise and consumer adoption which drives GDP growth and productivity gains

3. Gives away market share to China for countries who don't follow the ban(which will be many)

Banning open-source might benefit labs, but only in the short-term, as they will lose long term regardless. It will harm independent neoclouds, enterprises and consumers. Because you forcefully drive up the cost of using intelligence by 100x compared to China, and if everyone in China and ROW can afford the good-enough intelligence but only not in the US, will this benefit US in the long run?

Yann LeCun reposted

Daniel Jeffries

We kneecapped our own American chip companies with export controls.

We had 100% of the market and China had a bunch of bloated, bedsore, state sponsored companies doing piss poor chip design.

So we did we do?

Killed our own market dominance through a self-own and lit a fire under Chinese scientists and engineers and made the Chinese state see our chip dominance as an existential threat and now they're roaring ahead.

Soon there will be two stacks in the world.

If the US further isolates and bans or limits Chinese models to favor our incumbents, then the rest of the world will standardize on the Chinese software and chip stack while we pay exorbitant token prices and fall behind faster and faster.

We're ahead now with closed but open wins in the end. It out scales. It swarms. It grows through sheer wide distribution, starting out worse and then getting better and better.

The cloud and mass scale came through tech like Linux and Kubernetes and Docker and Postgress, not Windows and Oracle.

We won the American century with openness and having the most innovative companies in the world distributing their tech far and wide.

We're going to lose with closed and protectionist, if we don't wake up fast.

David Sacks reposted

Global Government Affairs

The X Safety team conducted an investigation into suspected Chinese inauthentic accounts involved in influence operations:

We identified a bot farm of approximately 200,000 accounts. Within this farm, we found 200 accounts posting in a manner that could manipulate a legitimate debate about American AI and energy policy.

These posts contained claims that AI data centers are driving up household electricity prices and straining the grid. Others included AI-generated cartoons that depicted data-center operators enriching themselves at the public's expense.

We remain committed to maintaining an open and authentic platform where people debate topics of public interest. We take seriously any attempts to undermine the integrity of the global town square and suspend accounts that violate our Authenticity policy.