{"id":816593,"date":"2026-07-21T15:22:10","date_gmt":"2026-07-21T15:22:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/816593\/"},"modified":"2026-07-21T15:22:10","modified_gmt":"2026-07-21T15:22:10","slug":"bessent-says-u-s-could-sanction-china-over-ai-model-theft","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/816593\/","title":{"rendered":"Bessent says U.S. could sanction China over AI model &#8216;theft&#8217;"},"content":{"rendered":"<p>Scott Bessent, US treasury secretary, during the 2026 Reagan National Economic Forum at the Ronald Reagan Presidential Library in Simi Valley, California, US, on Friday, May 29, 2026. <\/p>\n<p>Caroline Brehman | Bloomberg | Getty Images<\/p>\n<p>U.S. Treasury Secretary <a href=\"https:\/\/www.cnbc.com\/2026\/06\/24\/cnbc-transcript-us-treasury-secretary-scott-bessent-speaks-with-cnbcs-joe-kernen-on-squawk-box-today.html\" rel=\"nofollow noopener\" target=\"_blank\">Scott Bessent<\/a> on Tuesday said the Trump administration will look into whether Chinese <a href=\"https:\/\/www.cnbc.com\/ai-artificial-intelligence\/\" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> models have been distilled from American models, stating that the government does not support &#8220;IP theft.&#8221;<\/p>\n<p>Chinese open-weight models are <a href=\"https:\/\/www.cnbc.com\/2026\/07\/17\/moonshot-ai-kimi-k3-model-openai-anthropic-china.html\" rel=\"nofollow noopener\" target=\"_blank\">gaining steam<\/a> against leading offerings from American companies like <a href=\"https:\/\/www.cnbc.com\/quotes\/OPENAI.FG\/\" rel=\"nofollow noopener\" target=\"_blank\">OpenAI<\/a> and <a href=\"https:\/\/www.cnbc.com\/quotes\/ANTHR.FG\/\" rel=\"nofollow noopener\" target=\"_blank\">Anthropic<\/a>, sparking <a href=\"https:\/\/x.com\/DavidSacks\/status\/2078092271296143593?s=20\" target=\"_blank\" rel=\"nofollow\">concerns from tech executives<\/a> and government officials about the durability of the U.S.&#8217; lead in the AI race. Moonshot AI, a Chinese startup, released a new model called <a href=\"https:\/\/www.cnbc.com\/2026\/07\/17\/moonshot-ai-kimi-k3-model-openai-anthropic-china.html\" rel=\"nofollow noopener\" target=\"_blank\">Kimi K3<\/a> earlier this month that outperforms those companies across some industry benchmarks. <\/p>\n<p>&#8220;If we see, especially that overseas models are stealing from our great companies, we have the ability to sanction them because of this theft,&#8221; Bessent told Fox Business on Tuesday. <\/p>\n<p>Bessent said the technical term for this theft is called distillation, which is an AI training method where a small, less capable model is built using outputs from an existing, stronger model. <a href=\"https:\/\/www.cnbc.com\/2026\/06\/24\/anthropic-alibaba-distillation-campaign.html\" rel=\"nofollow noopener\" target=\"_blank\">Anthropic sent a letter<\/a> to the U.S. Senate Committee on Banking, Housing, and Urban Affairs\u00a0last month alleging that the Chinese tech company\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/BABA\/\" rel=\"nofollow noopener\" target=\"_blank\">Alibaba<\/a> had carried out the &#8220;the largest known distillation attack&#8221; against it to date.<\/p>\n<p>The U.S. and China are planning to hold <a href=\"https:\/\/www.cnbc.com\/2026\/07\/21\/us-china-ai-talks-bessent.html\" rel=\"nofollow noopener\" target=\"_blank\">talks around AI<\/a> in September, according to a report from Reuters on Tuesday. Bessent will represent the U.S. during the discussions, the report said.<\/p>\n<p>&#8220;We are finding watermarks of our U.S. large language models on many of the Chinese models, and that&#8217;s unacceptable,&#8221; Bessent said Tuesday. &#8220;We&#8217;re going to be looking at that in the coming days or weeks.&#8221;<\/p>\n<p>But both Anthropic and OpenAI have faced their own accusations of theft in recent years. <\/p>\n<p>Anthropic agreed to <a href=\"https:\/\/www.cnbc.com\/2025\/09\/05\/anthropic-to-pay-1point5-billion-to-settle-authors-copyright-lawsuit-.html\" rel=\"nofollow noopener\" target=\"_blank\">pay $1.5 billion<\/a> in September to settle a class action lawsuit with a group of authors, who alleged that the company illegally downloaded books from pirated databases. <a href=\"https:\/\/www.cnbc.com\/2023\/12\/27\/new-york-times-sues-microsoft-chatgpt-maker-openai-over-copyright-infringement.html\" rel=\"nofollow noopener\" target=\"_blank\">The New York Times sued<\/a> OpenAI and Microsoft in 2023, alleging that the companies infringed on copyright by using its intellectual property to train models.<\/p>\n<p><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/07\/108326030-17823030991782303090-46743125196-1080pnbcnews.jpg\" alt=\"Watch CNBC's full interview with Treasury Secretary Scott Bessent\"\/><a href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.cnbc.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Scott Bessent, US treasury secretary, during the 2026 Reagan National Economic Forum at the Ronald Reagan Presidential Library&hellip;\n","protected":false},"author":2,"featured_media":759331,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,11854,1930,276,277,4615,2158,161,49,48,10355,50137,244,13627,273790,714,12400,61,772],"class_list":["post-816593","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alibaba-group-holding-ltd","tag-anthropic","tag-artificial-intelligence","tag-artificialintelligence","tag-breaking-news-politics","tag-breaking-news-technology","tag-business-news","tag-ca","tag-canada","tag-enterprise","tag-government-debt","tag-internet","tag-microsoft-corp","tag-openai-forge-global","tag-politics","tag-scott-bessent","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/816593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=816593"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/816593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/759331"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=816593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=816593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=816593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}