By Blessing Nweke

The White House says it will intensify cooperation with U.S. artificial intelligence companies to counter what officials describe as “industrial-scale campaigns” by foreign actors seeking to copy American AI technology.

In an internal memo, Michael Kratsios, Director of the Office of Science and Technology Policy, warned that “foreign entities, principally based in China,” are exploiting U.S. firms through a process known as “distillation.” The technique involves extracting knowledge from advanced AI systems and using it to build competing models.

Kratsios said the effort aims to “systematically undermine American research and development and access proprietary information.” To respond, the administration plans to share intelligence with companies about tactics used in such campaigns, coordinate defenses, establish best practices to detect and mitigate threats, and explore ways to hold perpetrators accountable.

The memo did not outline specific penalties or enforcement measures. A White House spokesperson declined further comment.

China pushed back against the allegations. A representative of its embassy in Washington said Chinese innovation stems from “dedication and international cooperation,” criticizing what it called “unjustified suppression” of Chinese firms.

Distillation campaigns often rely on thousands of coordinated accounts interacting with AI systems to uncover hidden capabilities or sensitive details. That information can then be repurposed to train rival models.

Major AI developers, including OpenAI and Anthropic, have reported such activity. Earlier this year, Anthropic accused Chinese labs including DeepSeek, Moonshot AI, and MiniMax of attempting to replicate its systems.

Kratsios warned that models built on such methods may lack reliability. Meanwhile, President Donald Trump is expected to visit China in May, adding geopolitical weight to the dispute.