The NSA, FBI, and CISA accused Alibaba Group Holding Ltd. and five other Chinese firms of systematically stealing American AI model capabilities.

A joint advisory claims these companies used knowledge distillation since late 2024 to extract billions of tokens from U.S. frontier models.

Targeted systems include variants of American-made models such as Claude, GPT, Gemini, and Grok.

The allegations raise significant national security and intellectual property concerns, intensifying ongoing tech tensions between the U.S. and China.