The US State Department has launched a diplomatic initiative to warn global governments about Chinese technology companies allegedly siphoning off American AI expertise, reflecting mounting tensions in the ongoing technological rivalry.

The US State Department has launched a diplomatic campaign to alert governments around the world to what it describes as efforts by Chinese technology firms to siphon off American artificial intelligence know-how, according to a Reuters report based on a cable seen by the news agency. The document, dated Friday and sent to embassies and consulates, directs US diplomats to raise concerns about the “extraction and distillation” of US AI models with foreign counterparts.

The cable names DeepSeek, the Chinese AI start-up that has drawn global attention for building low-cost, high-performing language models, and says a separate request has been sent to Beijing. Reuters said the move is part of a broader attempt by Washington to frame the issue not simply as commercial competition, but as a matter of intellectual property protection and national security.

The complaint centres on a practice known as distillation, in which a smaller model is trained on the outputs of a larger system in order to cut development costs. Industry observers have long noted that the technique is common in AI development, but US officials now appear to be arguing that Chinese firms are using it to recreate capabilities from American models without permission. AP reported that the Trump administration is also preparing a wider crackdown on foreign firms accused of exploiting US AI systems, with plans to work with domestic companies on detection and countermeasures.

DeepSeek’s rise has made it a symbol of the intensifying rivalry between the US and China in artificial intelligence. In January, OpenAI said Chinese companies were constantly trying to distil leading US models, while Chinese authorities have separately moved to block dozens of trademark applications using the DeepSeek name, saying they were attempts to cash in on the brand’s popularity. The Chinese Embassy in Washington has rejected the theft allegations, describing them as unfounded attacks on China’s AI industry.

Source Reference Map

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Source: Noah Wire Services

Verification / Sources

  • https://indianexpress.com/article/technology/artificial-intelligence/us-orders-global-warning-over-alleged-ai-theft-by-deepseek-and-chinese-firms-10654753/ - Please view link - unable to able to access data
  • https://www.gmanetwork.com/news/scitech/technology/985270/us-state-dept-orders-global-warning-about-alleged-china-ai-thefts-by-deepseek-others/story/ - The US State Department has initiated a global campaign to address alleged intellectual property theft by Chinese companies, including AI startup DeepSeek, from U.S. AI labs. A diplomatic cable directs personnel to discuss concerns about adversaries' unauthorized extraction of US AI models. The cable also mentions Chinese AI firms Moonshot AI and MiniMax, highlighting the risks associated with AI models distilled from US proprietary models. The Chinese Embassy in Washington has denied these allegations, stating they are baseless and deliberate attacks on China's AI industry development.
  • https://www.malaymail.com/news/world/2026/04/25/us-state-dept-orders-global-warning-about-alleged-ai-thefts-by-deepseek-other-chinese-firms/217606 - The US State Department has ordered a global push to bring attention to what it says are widespread efforts by Chinese companies, including AI startup DeepSeek, to steal intellectual property from US artificial intelligence labs, according to a diplomatic cable seen by Reuters. The cable instructs diplomatic staff to speak to their foreign counterparts about concerns over adversaries' extraction and distillation of US AI models. A separate demarche request and message have been sent to Beijing for raising with China. 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 powerful new AI tool.
  • https://www.republicworld.com/world-news/us-state-dept-orders-global-warning-about-alleged-ai-thefts-by-deepseek-other-chinese-firms - The US State Department has ordered a global push to bring attention to what it says are widespread efforts by Chinese companies, including AI startup DeepSeek, to steal intellectual property from US artificial intelligence labs, according to a diplomatic cable seen by Reuters. The cable instructs diplomatic staff to speak to their foreign counterparts about concerns over adversaries' extraction and distillation of US AI models. A separate demarche request and message have been sent to Beijing for raising with China. 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 powerful new AI tool.
  • https://www.scmp.com/tech/policy/article/3300224/deepseek-knock-offs-flourish-china-curbs-false-trademarks-capitalising-ai-hype - Chinese authorities have blocked dozens of trademark applications filed with the name DeepSeek, as the Chinese artificial intelligence (AI) start-up faces a flurry of attempts, some possibly in Hong Kong, to take advantage of its global popularity. China’s National Intellectual Property Administration said in a statement on Tuesday that it had rejected 63 trademark applications containing the name DeepSeek. These companies and individuals showed a clear intention to exploit the hype around the start-up’s AI models and to seek improper gains, the administration said. DeepSeek has stunned the world with its high-performance open-source large language models released in recent months, said to be developed at a fraction of the typical cost.
  • https://www.euronews.com/next/2025/01/29/openai-says-chinese-companies-are-trying-to-use-us-models-to-train-ai - The new AI app DeepSeek disrupted global markets this week after releasing a model that could compete with US models like ChatGPT but was more cost-effective. ChatGPT creator OpenAI has evidence that the Chinese artificial intelligence (AI) app DeepSeek used the US-based company’s technology to train its budget model, according to a report in the Financial Times. An OpenAI spokesperson told Euronews Next that Chinese companies and others were "constantly trying to distil the models of leading US AI companies," in response to a request for comment on the report.
  • https://www.apnews.com/article/a5c40346394ef5fa9ae710c5aabdc62c - The Trump administration is initiating a crackdown on foreign, particularly Chinese, technology firms accused of exploiting U.S. artificial intelligence (AI) models. In a memo issued by Michael Kratsios, the president's chief science and technology adviser, Chinese entities were accused of industrial-scale efforts to extract and repackage capabilities from U.S.-developed AI systems. The administration plans to collaborate with domestic AI companies to detect such misuse and implement countermeasures, including penalties. This move comes amid intensifying U.S.-China AI competition, with a Stanford University report noting a narrowing performance gap between the two nations.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The article was published on April 25, 2026, and reports on a diplomatic cable dated Friday, which aligns with the publication date. The content appears to be original and not recycled from other sources. However, similar reports have emerged from other outlets, such as GMA News Online and Malay Mail, indicating that the narrative is being covered by multiple news organisations. (gmanetwork.com)

Quotes check

Score: 7

Notes: The article includes direct quotes from a diplomatic cable and statements from the Chinese Embassy in Washington. While the quotes are attributed, they cannot be independently verified without access to the original cable and official statements. The reliance on these unverified sources raises concerns about the accuracy and authenticity of the quotes.

Source reliability

Score: 8

Notes: The article is published by The Indian Express, a reputable news organisation. However, the primary source of the information is a Reuters report, which is also a credible news agency. The reliance on a single source for the main claims may limit the breadth of verification and perspective.

Plausibility check

Score: 7

Notes: The claims about the US State Department's global warning regarding alleged AI theft by Chinese firms, including DeepSeek, are plausible given the ongoing tensions between the US and China over intellectual property and AI development. (axios.com) However, the lack of direct access to the diplomatic cable and official statements makes it difficult to fully verify the details and context of the claims.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The article provides timely and relevant information on the US State Department's global warning regarding alleged AI theft by Chinese firms, including DeepSeek. While the content appears original and is supported by reputable sources, the inability to independently verify the quotes and the reliance on a single source for the main claims introduce some uncertainty. Given these factors, the overall assessment is a PASS with MEDIUM confidence.