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09 Sep 2026, 5:32 PMThe Hacker News7.0 U.S. Agencies Accuse China AI Firms of Distilling Claude, GPT, Gemini, and Grok

NSA, CISA, and FBI jointly accuse DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of industrial-scale distillation attacks extracting billions of tokens from Claude, GPT, Gemini, and Grok since late 2024. The advisory details specific tactics including chain-of-thought reasoning extraction, automated failover during blocking attempts, and bulk premium subscriptions shared across developer teams to cut costs.

Why: If you build on US frontier model APIs, expect tighter rate limits, stricter ToS enforcement, and possible KYC/usage audits as providers respond to distillation campaigns. The specific tactics described (CoT extraction, failover during blocking) also reveal what API providers can and cannot currently detect, which informs how you should design agentic workloads that won't trip anti-abuse systems.

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