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U.S. Treasury Secretary Warns of Sanctions Against Foreign AI Tech Theft on July 21

AI Industry News

2026-07-22 04:16:23

According to Fox Business, U.S. Treasury Secretary Scott Bessent warned on July 21 that the U.S. government could impose sanctions on foreign entities found stealing American AI technology. The Trump administration is investigating whether Chinese AI models used a 'distillation' method to exploit U.S. models—a technique involving training smaller models using outputs from higher-performance models. Bessent stated that watermarks from American large language models (LLMs) have been detected in multiple Chinese models, calling this 'unacceptable,' and said the administration would review the matter within days or weeks.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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