The Distillation Debacle: US Agencies Issue Stern Rebuke to China Based AI Companies The National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA), and FBI jointly condemned China based AI companies for allegedly engaging in "Industrial Scale Distillation Campaigns Against U.
S. AI Companies.
" The statement, released on Tuesday, alleged that these firms, likely with tacit approval from the Chinese government, extracted billions of tokens across millions of exchanges/requests from US frontier AI models since at least late 2024.