After DeepSeek V4 launch, US accuses Chinese AI labs of using ‘unauthorized distillation’ to clone Western tech

The United States has initiated a global diplomatic push alleging intellectual property theft by Chinese AI companies, according to a diplomatic cable seen by Reuters. The warning arrives shortly after Chinese AI startup DeepSeek made a grand comeback in the AI arena as it launched its highly anticipated V4 model, which is adapted for Huawei chip technology and is claimed to be on par with Gemini 3.1 Pro and GPT-5.4 on various tasks.

US warns about Chinese AI models:

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