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China's AI 'Distillation' Draws US Security Scrutiny
8 Sep
Summary
- U.S. security agencies accuse Chinese AI companies of aggressive data distillation.
- AI distillation trains smaller models using output from larger, costly ones.
- The activity aims to significantly lower the expenses of developing new AI tools.

U.S. cyber and law enforcement agencies have publicly stated that Chinese artificial intelligence companies are involved in "aggressive, industrial-scale distillation activities." This practice is a critical method for training new AI tools.
Distillation refers to the process where smaller AI models are developed using the output generated by larger, more expensive AI models. This technique is employed to substantially decrease the financial outlay required for training advanced AI systems.