Chinese military-linked researchers have reportedly used outputs from advanced AI models developed by OpenAI and Anthropic to train domestic artificial intelligence systems for defense applications. According to a Reuters investigation cited by The Times of India, researchers associated with the People's Liberation Army (PLA) employed a technique known as model distillation, which enables smaller AI models to learn from the responses of more advanced systems without directly copying their underlying code. The findings are based on a review of more than 80 Chinese academic papers and patents.
The report says the distilled AI models are being developed for a range of military uses, including surveillance, drone navigation, target recognition, cyber warfare, and battlefield decision support. In some cases, researchers reportedly used outputs from OpenAI's GPT-3.5 to process source code and technical information before training localized AI models capable of operating within secure military networks. These efforts are intended to reduce dependence on expensive computing resources while adapting advanced AI capabilities for defense purposes.
The revelations have intensified concerns over AI security and intellectual property protection. OpenAI and Anthropic prohibit the unauthorized use of their proprietary models to develop competing systems, and U.S. officials have argued that such practices may violate usage policies and undermine national security. The controversy also highlights the growing strategic importance of model distillation, which has become a key point of tension in the global AI race as countries seek to build powerful domestic AI models with fewer computational resources.
China has rejected allegations of improper AI capability extraction, describing U.S. accusations as politically motivated and part of a broader effort to limit China's technological progress. Meanwhile, the report underscores the increasingly central role of artificial intelligence in military modernization, with AI emerging as a critical technology for future defense, intelligence, and cybersecurity operations. As competition between the United States and China intensifies, AI development is expected to remain a major geopolitical and national security priority.