American authorities are accusing Chinese companies of "distillation activities at an industrial scale." The National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA) and Federal Bureau of Investigation (FBI) have issued a joint cybersecurity advisory, warning organizations that Chinese AI companies are extracting the "proprietary functionalities and capabilities" of frontier American models. Specifically, the agencies are accusing DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI of extracting "billions of tokens across millions of exchanges/requests" from American models, including Anthropic's Claude, OpenAI's GPT, Google's Gemini and xAI's Grok, since 2024. Distillation is the term for a method in AI development in which the output of a powerful model is used to train newer ones. The warning states that DeepSeek used data and capabilities from various Claude, Gemini, GPT and Grok models to train its own, including the R1.

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China's hackers use DeepSeek for attacks, researchers say Researchers say experienced Chinese hackers are using far less capable AI to scale up their activities and achieve breakthroughs. Chinese hackers are ramping up attacks after integrating DeepSeek and other open-source artificial intelligence models into their operations, highlighting attackers' ability to leverage basic AI tools to hit targets abroad. State-affiliated cyber groups more than doubled the amount of attacks they carried out since they began delegating mundane tasks to AI and using it to develop advanced malicious software, according to TeamT5, a Taiwanese research firm. Researchers said it wasn't always possible to identify the AI model they used, but in general DeepSeek's offerings are popular with hackers in the country because of its high performance and ability to be customized. Anxieties among U.S. national security officials are mounting over the autonomous capabilities of advanced models from Anthropic and OpenAI after a series of high-profile incidents in which they managed to break out of testing environments. In a time of both misinformation and too much information, quality journalism is more crucial than ever.

DeepSeek made its name offering far cheaper AI services than its pricier western competitors, but the cheap ride appears to be at an end. The company has started telling customers to prepare for significant price rises with the advent of its latest model. With the announcement of DeepSeek V4 Pro, the company is raising its API pricing fourfold. The company said it's adopting a new peak and off-peak pricing to "allocate resources more reasonably." Starting on August 16, the DeepSeek V4 Pro model will cost 3.96 for 1 million output tokens at peak hours, more than four times the current rate of 0.87.

DeepSeek to get a'significant' price hike soon Alex Perry is a tech reporter at Mashable who primarily covers video games and consumer tech. Alex has spent most of the last decade reviewing games, smartphones, headphones, and laptops, and he doesn't plan on stopping anytime soon. He is also a Pisces, a cat lover, and a Kansas City sports fan. Everything is becoming more expensive, including things that are supposed to be cheap. The latest example is DeepSeek's AI services, as reported by .

Chinese AI sensation Moonshot's gamble on big models pays off People visit the Moonshot AI stand, featuring the Kimi K3 model, during the World Artificial Intelligence Conference in Shanghai on Saturday. Crowds rushed to an obscure corner of China's premier tech summit, moving past monumental booths from Alibaba Group Holding and Tencent Holdings to catch a glimpse of the hottest name in domestic artificial intelligence. Developers and users at the World AI Conference jostled for a closer look at Moonshot and its Kimi K3 -- the giant 2.8 trillion-parameter model whose release on Friday showed China was closing the gap on OpenAI and Anthropic PBC far quicker than anticipated. The startup became an instant global sensation, drawing comparisons to DeepSeek's 2025 breakout and plaudits from the likes of Tesla CEO Elon Musk. Such was the crush over the weekend that Moonshot blew through its entire stock of branded swag in just a few hours. Moonshot's emergence is a vindication not just for the country's AI industry, but also for founder Yang Zhilin.

Check your subscription status, update your details and more. Powerful artificial intelligence models built by Chinese companies have gone from inducing widespread panic to being met with a shrug of the shoulders - what changed? When Chinese company DeepSeek released its open-source R1 model in January 2025, it made headlines around the world. The large language model (LLM) was reported to rival some of the most powerful AIs from US companies, but it was completely free for anyone to download. A trillion dollars was wiped off the value of US tech companies and US lawmakers immediately proposed banning it on government devices.

China's DeepSeek developing its own AI chip, sources say DeepSeek is designing its own chip for inference, the stage of artificial intelligence computing in which a trained model generates responses for users, sources said. Chinese startup DeepSeek is developing its own artificial intelligence chip, according to three people familiar with the matter, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models. The chip is designed for inference -- the stage of AI computing in which a trained model generates responses for users -- rather than for training new models, the sources said. If successful, DeepSeek's expansion into semiconductor development would mark a major strategic shift for a company widely hailed in China as the country's AI champion, potentially adding to challenges faced by Chinese tech giant Huawei. In a time of both misinformation and too much information, quality journalism is more crucial than ever.