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NSA and FBI Accuse DeepSeek and Moonshot of Stealing US AI Models

On September 8, 2026, the NSA, FBI and CISA issued joint cybersecurity advisory AA26-251A, accusing six China-based AI companies, including DeepSeek and Moonshot AI, of running "industrial-scale" distillation campaigns against American AI models. The companies did not respond publicly, and China's embassy rejected the allegations. We explain what distillation is, what the advisory alleges, what it does not show, and what it means for anyone building with these models.

⚡ Quick facts

  • Issued: September 8, 2026: joint advisory AA26-251A from the NSA, FBI and CISA
  • Named firms: DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI
  • Targets: Anthropic's Claude, OpenAI's GPT, Google's Gemini and xAI's Grok
  • Alleged scale: billions of tokens over millions of requests since 2024, per the advisory
  • Response: the companies did not comment; China's embassy dismissed the allegations

What distillation is

Distillation means training a model on the outputs of a stronger one. It is a standard technique when you own both models. It becomes contested when the stronger model belongs to someone else: most AI providers' terms forbid using their outputs to build competing models. The practical effect is that a lab can copy much of a rival's capability for a small fraction of the cost of training it.

What the advisory alleges

According to The Next Web and Engadget, the advisory names six companies and describes campaigns running since 2024:

The methods described are familiar to anyone who runs an API: networks of fraudulent accounts, traffic routed through cloud and aggregator proxies, a grey market of resold API access called "transfer stations", jailbreaks to extract hidden reasoning, and automatic failover when an account is banned. The advisory says the campaigns likely ran with Chinese government awareness, and argues that DeepSeek's widely cited $5.6 million training cost excludes the value of distilled data.

What it does not show

The advisory is an accusation, not a court finding. Its evidence is not public, the named companies have not answered it, and Chinese embassy spokesman Liu Chang dismissed it, per ProPakistani. It also announces no sanctions or legal action. Distillation is not new as an allegation either: OpenAI said in early 2025 that it was investigating DeepSeek, and Anthropic made similar accusations earlier in 2026. What is new is US security agencies putting their name to it.

What the agencies recommend

Our take: what it means if you build with these models

For background on one of the named labs' models, see our DeepSeek V4.1 Flash explainer.

Sources

Frequently asked questions

What is advisory AA26-251A?

A joint cybersecurity advisory from the NSA, FBI and CISA, issued September 8, 2026, accusing six China-based AI companies of industrial-scale distillation of US AI models.

Which companies were named?

DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI.

What is model distillation?

Training one model on the outputs of a stronger one. Most AI providers' terms forbid using their outputs to build competing models.

Is the accusation proven?

No. It is an accusation by US agencies. The supporting evidence is not public, the companies have not responded, and China's embassy rejected it.

Can I still use DeepSeek or Qwen?

The advisory does not ban any model or app. It concerns how the models were trained and recommends defenses for US AI providers.

What defenses does it recommend?

Detecting systematic querying, sharing indicators across companies, and quietly altering outputs given to suspected distillers.

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