Bessent warns China could face sanctions over AI IP theft
The administration will examine whether Chinese open-weight models were trained on stolen U.S. model outputs, as Anthropic and OpenAI have raised similar concerns.
- On Tuesday, Treasury Secretary Scott Bessent announced the Trump administration will investigate Chinese AI models for intellectual property theft, threatening sanctions against companies building offerings on "stolen materials."
- Anthropic alleged that Chinese tech giant Alibaba conducted "the largest known distillation attack" to extract capabilities from Claude, using thousands of fraudulent accounts to evade detection and violate service terms.
- Operators linked to Alibaba conducted approximately 28.8 million interactions with Claude models between April 22 and June 5 using roughly 25,000 fraudulent accounts, according to Anthropic's June 10 letter.
- Washington and China plan to hold talks regarding artificial intelligence in September, with Bessent representing the American government while companies including Alibaba and ByteDance have participated in similar discussions.
- Industry experts note distillation is standard practice used globally, and tech leaders warn that government intervention could create market uncertainty or stifle broader AI innovation.
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(Seoul = Yonhap News) Reporter Seol Won-tae = U.S. Treasury Secretary Scott Besant on the 21st (local time) closely examined China's open-source artificial intelligence (AI) models and U.S. [government]...
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Bessent warns China could face sanctions over AI IP theft
Treasury Secretary Scott Bessent warned Tuesday the Trump administration could sanction China over intellectual property (IP) theft amid concerns about whether Beijing is relying on American AI to develop its own advanced models. “We’ve seen a lot of talk about you know open-source models coming and threatening the large language models in the U.S.” Bessent…
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