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Applied AI·September 9, 2026·1 min read

FBI, NSA warn Chinese AI companies like DeepSeek and Alibaba are reportedly carrying out 'industrial-scale' distillation campaigns to boost their models

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If US agencies are calling out “industrial-scale” model distillation, assume your public endpoints and open models are active targets, not passive assets. Lock down rate limits, watermarking, and access controls on inference APIs this week—and treat model weights and training data like crown-jewel IP.