NATIONAL NEWS

Trump administration vows crackdown on Chinese companies ‘exploiting’ AI models made in US

Apr 23, 2026, 3:37 PM

FILE - White House director of Science and Technology Policy Michael Kratsios speaks during a meeti...

FILE - White House director of Science and Technology Policy Michael Kratsios speaks during a meeting of the White House Task Force on Artificial Intelligence Education in the East Room of the White House, Sept. 4, 2025, in Washington. (AP Photo/Alex Brandon, File)
Credit: ASSOCIATED PRESS

(AP Photo/Alex Brandon, File)

WASHINGTON (AP) — The Trump administration is vowing to crack down on foreign tech companies’ exploitation of U.S. artificial intelligence models, singling out China at a time that country is narrowing the gap with the U.S. in the AI race.

In a Thursday memo, Michael Kratsios, the president’s chief science and technology adviser, accused foreign entities “principally based in China” of engaging in deliberate, industrial-scale campaigns to “distill,” or extract capabilities from, leading AI systems made in the U.S. and “exploiting American expertise and innovation.”

The administration, Kratsios wrote, will work with American AI companies to identify such activities, build defenses and find ways to punish offenders.

The memo arrives at a time when China is challenging U.S. dominance in artificial intelligence, an area where the White House says the U.S. must prevail to set global standards and reap economic and military benefits. But the U.S.-China gap in performance of top AI models has “effectively closed,” according to a recent report from Stanford University’s Institute for Human-Centered AI.

China’s embassy in Washington said it opposed “the unjustified suppression of Chinese companies by the U.S.”

“China has always been committed to promoting scientific and technological progress through cooperation and healthy competition. China attaches great importance to the protection of intellectual property rights,” said Liu Pengyu, the embassy spokesperson.

Kratsios’ memo also came the same week that the House Foreign Affairs Committee offered unanimous, bipartisan support for a bill to set up a process to identify foreign actors that extract “key technical features” of closed-source, U.S.-owned AI models and to punish them with measures including sanctions.

“Model extraction attacks are the latest frontier of Chinese economic coercion and theft of U.S. intellectual property,” said Rep. Bill Huizenga, R-Mich., who sponsored the bill. “American AI models are demonstrating transformative cyber capabilities, and it is critical we prevent China from stealing these technological advancements.”

Last year, the Chinese start-up DeepSeek rattled U.S. markets when it released a large language model that could compete with U.S. AI giants but at a fraction of the cost.

David Sacks, then serving as President Donald Trump’s AI and crypto adviser, suggested that DeepSeek copied U.S. models. “There’s substantial evidence that what DeepSeek did here is they distilled the knowledge out of OpenAI’s models,” Sacks said then.

In a February letter to U.S. lawmakers, OpenAI, the developer of ChatGPT, made similar allegations and said China should not be allowed to advance “autocratic AI” by “appropriating and repackaging American innovation.”

Anthropic, the maker of the Claude chatbot, in February accused DeepSeek and two other China-based AI laboratories of engaging in campaigns to “illicitly extract Claude’s capabilities to improve their own models” using the distillation technique that “involves training a less capable model on the outputs of a stronger one.”

Anthropic said distillation can be a legitimate way to train AI systems but it’s a problem when competitors “use it to acquire powerful capabilities from other labs in a fraction of the time, and at a fraction of the cost, that it would take to develop them independently.”

But it can go both ways. San Francisco-based startup Anysphere, maker of the popular coding tool Cursor, recently acknowledged that its latest product was based on an open-source model made by Chinese company Moonshot AI, maker of the chatbot Kimi.

Kyle Chan, a fellow at the Washington-based think tank The Brookings Institution and an expert on China’s technology development, said it will be like “looking for needles in an enormous haystack” to separate unauthorized distillation from the vast volume of legitimate requests for data. But information sharing and coordination among U.S. AI labs could help, and the federal government can play an important role in facilitating anti-distillation efforts across labs, Chan said.

It’s hard to assess how far the House bill can go, but Chan said Trump may not want to rock the boat with Chinese President Xi Jinping ahead of a planned mid-May state visit to Beijing.

___

AP Technology Writer Matt O’Brien contributed to this report from Providence, Rhode Island.

Please follow our Community Guidelines

National News

This combination photo shows Sen. Dan Sullivan, R-Alaska, left, in Palmer, Alaska, Aug. 17, 2026, a...

Associated Press

What’s going on with Dan Sullivan and Dan Sullivan? The Alaska Senate litigation, explained

President Donald Trump’s administration has taken its first step to block the results of a midterm election, and it’s all about the fact that there are two Dan Sullivans on the Alaska Senate ballot. One of them is a Republican and ally of the president. The other is a retired school teacher whom Republicans accuse […]

46 minutes ago

A plume of smokes rises from MC Tank Transport Inc., where a chemical tank exploded overnight, prom...

Associated Press

Toledo, Ohio, mayor says employee error caused chemical leak, lifts remaining evacuation orders

TOLEDO, Ohio (AP) — Officials in northeast Ohio said Friday that a chemical tank leak earlier in the week was caused by a chemical reaction resulting from an employee error and lifted all remaining evacuation orders. Toledo Mayor Wade Kapszukiewicz said during a news conference that the venting of the tank that ruptured at MC […]

1 hour ago

Associated Press

Severe flooding in the Four Corners region triggers rooftop rescues and evacuation orders

FORT COLLINS, Colo. (AP) — Severe flooding in the Four Corners region on Friday led to water rescues — some from rooftops — and impassable roads, with some residents being told to evacuate low-lying areas of Colorado and New Mexico and others advised to shelter in place until water levels go down. It followed several […]

2 hours ago

FILE - People attend a showcase event of the company's AI assistant, Copilot, ahead of the annual B...

Associated Press

Layoffs linked to changes in corporate AI spending

The fears of a bubble in the sector grow, but the potential impact on workers in some sectors is clear. Here’s a look at some of the companies that have announced layoffs or hiring reductions this year that are tied in some way to massive spending on AI. Barclays The U.K. bank and financial services […]

3 hours ago

Associated Press

Police officer who shot and killed 1-year-old boy in Mississippi has resigned, Senatobia mayor says

The police officer who shot and killed a 1-year-old boy in Mississippi when he fired into a moving vehicle while responding to a shoplifting call has resigned, the Senatobia Mayor Greg Graves told The Associated Press Friday. Sgt. Hunter Foster had been cleared of criminal wrongdoing by the Mississippi Attorney General’s office earlier this week […]

3 hours ago

President Donald Trump arrives on Air Force One, Friday, Oct. 23, 2026, at Joint Base Andrews, Md. ...

Associated Press

Trump administration files lawsuit to block possible Democratic win in Alaska Senate race

The Trump administration has filed a lawsuit to block certification of the Senate race in Alaska if Republican Sen. Dan Sullivan loses the contest while another candidate with the same name is on the ballot, kicking off what many have feared could become a lengthy battle between the U.S. government and states over certifying an […]

4 hours ago

Trump administration vows crackdown on Chinese companies ‘exploiting’ AI models made in US