The White House has said it will work more closely with US artificial intelligence (AI) firms to combat industrial-scale campaigns by foreign actors to steal advances in the technology.

Michael Kratsios, Director of Science and Technology Policy, wrote in an internal memo that the administration had new information indicating foreign entities, principally based in China were exploiting American firms.

Through a process called distilling, such firms are essentially copying AI technology developed by US companies, he said.

A representative of China's US embassy in Washington DC said its development was the result of its own dedication and effort as well as international cooperation.

In the memo, Kratsios said the aim was to systematically undermine American research and development and access proprietary information.

To address this, the White House will engage in four actions: sharing more information with US AI companies about tactics employed and actors involved in distillation campaigns, coordinating better with companies to fight these attacks, developing best practices to identify, mitigate, and remediate them, and exploring accountability for foreign actors.

The memo did not detail specific plans for action against foreign entities involved in distilling US AI technology. A spokesperson for the White House declined to comment beyond the memo.

A representative of China's US embassy objected to the memo's claims, emphasizing China's achievements are based on dedication and international collaboration.

China is not only the world's factory but is also becoming the world's innovation lab, the representative stated.

Distillation campaigns are characterized by firms operating many accounts for a given AI tool to mimic regular user behavior, enabling them to extract sensitive information about AI models.

As detection methods advance, Kratsios warned that foreign entities building upon such fragile foundations should not expect reliable outcomes.

While Kratsios did not specify foreign entities, leading AI firms like OpenAI and Anthropic have reported ongoing issues with distillation activities, particularly mentioning labs based in China.

This situation underscores the ongoing tussle between U.S. and Chinese technology firms in the competitive AI landscape.