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Report: Chinese Companies Are Stealing American AI Tech At ‘Industrial Scale’

Chinese companies are reportedly stealing U.S. AI technology at industrial scale, exploiting weak safeguards and aggressive espionage tactics. A new report warns this theft threatens American innovation, national security, and future AI leadership.

September 11, 2026
2 min read

(Washington Stand) A government cybersecurity advisory has revealed that several China-based AI companies are stealing artificial intelligence technology from American companies that pioneered the technology. Experts say the Trump administration must utilize commerce policies and sanctions to impose consequences on the Chinese entities involved in the theft.

On Tuesday, the FBI, the National Security Agency, and other federal agencies released a joint statement detailing how, since at least late 2024, Chinese AI companies like DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI have been fabricating AI models by “distilling” answers received from millions of queries directed at leading American frontier models, including variants of Claude, ChatGPT, Gemini, and Grok, “likely with Chinese government awareness.”

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