DeepSeek Faces U.S. State Department AI Theft Allegations

The U.S. State Department has alerted global diplomatic posts about alleged efforts by Chinese companies, specifically AI startup DeepSeek, to steal intellectual property from U.S. AI labs as of February 26, 2026. DeepSeek has not shared its upcoming AI model with American engineers and has granted early access to Chinese companies. The State Department's cable emphasizes concerns over unauthorized distillation of U.S. AI models, impacting national security and market integrity. The White House has echoed similar accusations, which the Chinese Embassy has denied, underscoring ongoing tensions in the tech sector related to intellectual property rights.