Chinese military reportedly uses American AI models to train its defense systems – tools from OpenAI and Anthropic reportedly among those affected

Distillation sidesteps the logic of US export controls, which restrict the chips needed to train frontier models but cannot restrict the text those models produce Review of more than 80 Chinese papers and patents found PLA-linked researchers distilling outputs from OpenAI and Anthropic models into small systems they can run locally The Trump administration is increasingly critical of the approach and has claimed Chinese research lab-created Kimi K3 distilled Anthropic’s Fable model A new investigation has claimed Chinese military researchers have used outputs from American AI models built by OpenAI and Anthropic to train domestic systems intended to advance the…