US advisory says industrial-scale model copying is now an infrastructure problem
A joint US cybersecurity advisory says China-based AI companies are using industrial-scale distillation to extract capabilities from US models, potentially cutting the cost of compute, electricity, and foundational research. The report describes requests routed through APIs, cloud providers, relays, aggregators, and pools of vendor accounts, with metadata stripped and quotas optimized to hide the operation. It recommends stronger identity checks and monitoring for enterprise-scale or immediately maxed-out usage.