The White House has issued a stark warning that American artificial intelligence (AI) firms are facing industrial-scale theft by foreign actors, principally from China.

Michael Kratsios, Director of Science and Technology Policy, revealed in an internal memo that these firms were using a process called 'distilling' to copy AI technology developed by US companies. This involves operating thousands of individual accounts to jailbreak or otherwise expose information about models not meant for public access.

In response, the administration plans to share more information with US AI companies and develop best practices to identify, mitigate, and remediate such actions. It also aims to explore accountability measures against foreign entities found guilty of distillation.

China's US embassy has disputed these claims, stating that China's development is due to its own dedication and international cooperation. Despite the memo’s vague action plans, leading AI companies like OpenAI and Anthropic have already reported dealing with such 'attacks' by Chinese firms.