Washington: The United States has flagged what it calls “industrial-scale” efforts by foreign actors, primarily based in China, to extract capabilities from American artificial intelligence systems, according to a memorandum issued by the White House Office of Science and Technology Policy.

The document alleges that these actors are using large networks of proxy accounts and jailbreaking techniques to access proprietary information and replicate the performance of advanced US-developed AI models.

"However, the United States government has information indicating that foreign entities, principally based in China, are engaged in deliberate, industrial-scale campaigns to distill U.S. frontier AI systems. Leveraging tens of thousands of proxy accounts to evade detection and using jailbreaking techniques to expose proprietary information, these coordinated campaigns systematically extract capabilities from American AI models, exploiting American expertise and innovation," the statement read.

The memorandum notes that while such efforts may not fully reproduce the original models, they can enable the development of lower-cost alternatives that appear competitive on specific benchmarks. It also cautions that these derivative systems may lack the safety features and safeguards built into US AI technologies.

Highlighting broader risks, the document warns that such practices could undermine American innovation and weaken efforts to ensure AI systems remain neutral and reliable. It adds that while legitimate AI distillation is a recognised technique for building smaller models, unauthorised large-scale extraction of capabilities is not acceptable.

To counter the threat, the Trump administration outlined a series of steps, including closer coordination with private companies and intelligence-sharing mechanisms.

"To address this threat, the Trump Administration will: Share information with U.S. AI companies concerning attempts by foreign actors to conduct unauthorised, industrial-scale distillation, including the tactics employed and actors involved. Enable the private sector to better coordinate against such attacks. Work together with private industry to develop best practices to identify, mitigate, and remediate industrial-scale distillation activities and build strong defences against such activities. Explore a range of measures to hold foreign actors accountable for industrial-scale distillation campaigns," the statement read.