US accuses Chinese AI firms of 'malicious' copying of AI technology

Economic Times TechSeptember 9, 2026en

The Chinese companies copied U.S. AI labs' intellectual property through a technique known ‌as distillation, according ⁠to ⁠a statement from U.S. law enforcement and intelligence officials. Distillation is the process of training ​smaller AI models using output from larger, more expensive ones as part of an effort ​to lower the costs of training a new AI tool.

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