U.S. State Department orders global warning about alleged China AI thefts by DeepSeek, others: Reuters

DeepSeek reportedly has not shared its upcoming AI model with American engineers and instead granted early access to Chinese companies, further intensifying the technological war between the U.S. and China, as of Feb. 26, 2026. Nurphoto | Nurphoto | The U.S. State Department has ordered a global push to bring attention to what it says are widespread efforts by Chinese companies, including AI startup DeepSeek, to steal intellectual property from U.S. artificial intelligence labs, according to a diplomatic cable seen by Reuters. The cable said its purpose was to "warn of the risks of utilizing AI models distilled from U.S. proprietary AI models, and lay the groundwork for potential follow-up and outreach by the U.S. government." Distillation is the process of training smaller AI models using output from larger, more expensive ones as part of an effort to lower the costs of training a powerful new AI tool. DeepSeek, the Chinese startup whose low-cost AI model stunned the world last year, on Friday launched a preview of a highly anticipated new model adapted for Huawei chip technology, underlining China's growing autonomy in the sector. The State Department, DeepSeek and the Chinese Embassy in Washington did not immediately respond to a request for comment. The cable also mentioned Chinese AI firms Moonshot AI and MiniMax. Neither company immediately responded to a request for comment. …