The White House accused China-based entities of orchestrating “industrial-scale” efforts to copy proprietary U.S. artificial-intelligence systems through model distillation, according to Michael Kratsios, President Trump’s top science and technology adviser. The administration plans to brief American AI firms on the tactics—such as mass proxy accounts and jailbreak methods—and is weighing measures to hold foreign actors accountable. Kratsios said the resulting models won’t match original performance but can appear competitive on select benchmarks at lower cost and with stripped safety protocols. He emphasized distillation can be legitimate but condemned campaigns that target U.S. R&D and protected IP. The Chinese Embassy did not immediately comment.
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