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Bipartisan Bill Targets Chinese Espionage Against American AI Companies

The proposal would let AI developers share threat information and coordinate defenses against model theft without violating antitrust law.

Republican and Democratic lawmakers introduced a Chinese AI espionage bill Thursday that would let American AI companies work together to prevent foreign actors from stealing or copying their most advanced models.

Sens. Jim Banks (R-Ind.) and Adam Schiff (D-Calif.) introduced the bipartisan Collaboration on Adversarial Threats and Security Risks Act. Reps. Bob Latta (R-Ohio) and George Whitesides (D-Calif.) introduced the House version with additional bipartisan sponsors.

Banks and Schiff said foreign adversaries are using cyberattacks, model theft and distillation attacks to steal or reproduce advanced American AI systems.

Their announcement cites reports that Chinese actors used tens of thousands of fraudulent accounts to obtain millions of responses from leading American AI systems. Those responses can be used to train another model to reproduce some of the original system’s capabilities at a much lower cost, a process known as “distillation.”

The bill would let rival AI companies work together to identify and respond to foreign espionage without violating antitrust laws. That could include sharing intelligence and resources, investigating threats and coordinating defenses across companies. The same protection would extend to collaboration against other catastrophic AI risks, including threats involving weapons, critical infrastructure or the loss of control over advanced systems.

Companies could also agree to slow or stop an AI system’s development, delay its release or restrict how it is tested and used. They would first have to notify the Justice Department’s Antitrust Division and explain the risk and planned restrictions.

Organizations receiving shared information would have to limit its use to the security purpose covered by the bill.

The exemption would apply only to security collaboration. Companies could not use it to engage in collusion activities such as coordinating prices, dividing up customers, or otherwise limiting competition. A company invoking the exemption in an antitrust case would have to prove that it acted in good faith for a covered security purpose.

The attorney general could also ask a court to stop coordinated action that violates antitrust law or would increase the security risks the companies claimed to be addressing.

The House version, H.R. 9914, was referred to the House Judiciary Committee after its introduction on July 23.

Clayton Rifkind

Clayton Rifkind is the Founder and Senior Editor of AI Risk Today. He also advises on business development for ESG Today, a leading source of ESG investment news and research for institutional investors and corporate leaders. He has 20+ years of experience in B2B technology, leading strategy and execution of go-to-market plans across software, enterprise platforms, and mobile applications. He founded two consultancies advising startups and Fortune 1000 companies, including Autodesk, Intel, and Microsoft. He began his career in the San Francisco advertising scene working with brands such as Hewlett-Packard, Intel, Microsoft, Symantec, and Wells Fargo. Clayton launched AI Risk Today in 2025 after two decades of watching enterprises adopt transformative technologies, and seeing how often risk, governance, and compliance considerations lagged behind. His reporting draws on primary sources including regulatory filings, court documents, and official announcements, with a focus on what AI developments mean for the executives accountable for managing them. Reach him at Reach him at [email protected] or on LinkedIn.

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