The State Department has ordered an intensive information campaign to expose the methods that China is using to dominate the Artificial Intelligence market. At the center of the accusations is the company DeepSeek. The Chinese startup, which last year surprised the world with an incredibly powerful AI model, is accused of using “distillation”, a process in which Chinese models are trained by stealing data and producing artificial intelligence from American laboratories.
“Washington says this is not just a competition, but an illegal technology leak that has cost billions of dollars in US investments,” the US Department of State said in a statement.
In addition to DeepSeek, the Pentagon and State Department blacklist Chinese firms Moonshot AI and MiniMax. The attack came shortly after DeepSeek unveiled a new model specifically tailored for Huawei chips, showing that China is gaining full technological independence despite sanctions. The Chinese embassy in Washington called the accusations “baseless,” stating that China remains committed to protecting copyright.
However, the US instructs diplomats to ask international partners to be vigilant against the risks posed by using Chinese models, which they say are built on stolen American foundations.

