White House Alleges China Steals US AI Technology

The White House, via a memo from **Michael Kratsios**, says foreign entities, principally based in **China**, are conducting “industrial-scale” campaigns to extract capabilities from US frontier AI systems using techniques like proxy accounts and jailbreaking. The administration will share intelligence with US AI firms and “explore a range of measures to hold foreign actors accountable,” raising the possibility of stricter export controls on hardware such as **Nvidia** chips ahead of President **Donald Trump**’s planned visit to Beijing. The memo frames the activity as coordinated distillation operations that systematically expose proprietary model behavior, and warns these copied models will be less reliable than originals while still posing competitive and security risks.

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