U.S. to Curb ‘Industrial-Scale’ AI Theft by Chinese Firms

U.S. officials pledged a crackdown on Chinese firms accused of large-scale theft of artificial intelligence code, model weights and datasets, saying the activity poses a direct threat to U.S. economic and national security interests.

The administration outlined a multifaceted response that will use export controls, sanctions, criminal enforcement and diplomatic coordination. Measures discussed include tighter controls on high-performance chips and other hardware used to train large AI models, placing more entities on trade-restrictive lists and pursuing criminal investigations where warranted.

Authorities identified specific tactics the effort will target: covert acquisition of source code and model weights, unauthorized scraping of proprietary datasets, aggressive recruitment of engineers and covert research partnerships that transfer sensitive know-how out of the United States. Agencies will step up export oversight, monitor outbound investment and scrutinize research collaborations for vulnerabilities.

The Commerce Department is expected to expand use of its Entity List to block foreign firms from obtaining U.S. components and software that support advanced AI development. The Treasury and Justice departments may seek sanctions and criminal charges against entities and individuals linked to intellectual property theft. Intelligence and law-enforcement agencies will increase information sharing with industry to help companies detect intrusions and respond more quickly.

Private-sector AI developers have increased internal security, restricted access to sensitive projects and pressed for clearer legal tools to pursue trade-secret theft. Federal regulators and cybersecurity agencies plan to offer guidance and technical assistance to firms that suspect their AI assets have been compromised.

Washington has for years expressed concern about technology transfer and intellectual property theft tied to commercial and state-backed actors. Policymakers previously imposed export controls on advanced semiconductors and tightened scrutiny of foreign investment in sensitive technology sectors to limit access to components and expertise needed for cutting-edge AI systems.

Officials did not release a public list of specific firms identified in the allegations. Investigations and enforcement actions are ongoing, and authorities indicated additional punitive measures could follow as evidence is gathered and cases are brought.