The White House has formally accused foreign groups, principally those based in China, of carrying out industrial-scale theft of American artificial intelligence intellectual property and warned of an imminent push to counter such activity.
In a memo circulated by Michael Kratsios, director of the White House Office of Science and Technology Policy, the U.S. government says it holds information showing deliberate campaigns to "distill" U.S. frontier AI systems. The memo, which was reviewed by media outlets, states these campaigns use tens of thousands of proxy accounts to avoid detection and employ jailbreaking methods designed to surface proprietary information.
Kratsios told departments across government that the administration will provide details to American AI companies about efforts by foreign actors to perform unauthorized, industrial-scale distillation. The stated purpose of sharing this information is to help firms coordinate defenses against such attempts.
The memo also indicates the U.S. intends to explore measures that could hold foreign actors accountable for these industrial-scale distillation campaigns. The note frames these steps as part of a broader response to protect U.S. innovation from systematic exploitation.
These developments were made public weeks before a scheduled meeting in Beijing between President Donald Trump and President Xi Jinping.
Context and implications
The memo highlights the scale and method of the activity described by U.S. officials - namely coordinated use of large numbers of proxy accounts and jailbreaking techniques - and signals a policy response that includes sharing threat information with the private sector and exploring accountability measures. The White House characterization emphasizes the industrial nature of the campaigns and identifies China as the principal base for the foreign entities referenced in the memo.
Next steps noted by the administration
- Information will be shared with American AI companies about attempted unauthorized distillation efforts to aid coordination against these attacks.
- The U.S. will examine options to hold responsible foreign actors to account for industrial-scale distillation campaigns.
The memo does not specify the particular mechanisms that will be used to pursue accountability or the precise timetable for any actions, only that the administration intends to explore measures and to share intelligence with affected U.S. firms.