The U.S. State Department is leading a global initiative to address what it sees as widespread efforts by Chinese companies, including AI startup DeepSeek, to steal intellectual property from U.S. artificial intelligence labs. The purpose is to warn of the risks of using AI models derived from U.S. proprietary models. DeepSeek recently launched a new model adapted for Huawei chip technology. The State Department, DeepSeek, and the Chinese Embassy in Washington have not immediately responded to requests for comment. The diplomatic cable also mentions Chinese AI firms Moonshot AI and MiniMax. The White House has made similar accusations, which China has called baseless. The cable instructs diplomatic staff to discuss concerns over the extraction and distillation of U.S. AI models. The U.S. is concerned about China's distillation of U.S. AI models. The US is concerned about AI models developed from unauthorized distillation campaigns. OpenAI warned U.S. lawmakers that DeepSeek was targeting the company to replicate models. The diplomatic push could increase tensions between the US and China.