Anthropic recorded over 16 million interactions with Claude from about 24,000 fake accounts, which are reportedly linked to Chinese companies trying to cheaply copy the model. Google faced more than 100,000 attempts to copy Gemini. OpenAI reports that most distillation attacks they find come from China. This is not an isolated event. It is a repeatable and scalable strategy. Breaking the terms of service isn't enough to stop people when the reward is closing a years-long gap in AI technology. The House Select Committee on China wants to label 'adversarial distillation' as industrial espionage under the Economic Espionage Act, which makes sense. At the moment, getting caught just means losing an account. That is hardly a real punishment. The Trump-Xi summit is approaching, and the White House is reportedly considering sanctions. However, Trump has previously traded away export controls for other deals. If that happens again, AI companies may have to protect their intellectual property by themselves. When laws fail to keep pace with new types of attacks, attackers automatically have the advantage. If your company is developing anything unique using advanced AI models, your API access logs are now part of your security risks. https://arstechnica.com/tech-policy/2026/04/us-accuses-china-of-industrial-scale-ai-theft-china-says-its-slander/ #AI #Cybersecurity #NationalSecurity #IntellectualProperty #Geopolitics #security #privacy #cloud #infosec #Espionage