The U.S. has accused six Chinese artificial intelligence companies of copying American technology.

U.S. officials made the claims on Tuesday. They said the companies used a process called distillation to build their own AI tools.

In simple terms, distillation lets a smaller AI model learn from a larger one. As a result, companies can reduce the cost of building new systems.

The U.S. named six Chinese companies in its statement. They include DeepSeek, Moonshot AI and Alibaba.

According to U.S. officials, the companies used versions of AI models from American firms. These included Anthropic, OpenAI, Google and SpaceX.

Officials also said the activity likely happened with the knowledge of the Chinese government.

Furthermore, the U.S. described the alleged activity as large-scale and targeted. Officials said it could help Chinese firms reduce research and development costs.

The U.S. also raised concerns about national security. In particular, officials said the technology could strengthen China’s military and cyber abilities.

Meanwhile, Washington and Beijing are preparing for more talks. Chinese President Xi Jinping plans to visit the U.S. later this month.

In addition, the two countries plan to discuss AI safety in mid-September. The talks will focus on risks linked to the fast growth of artificial intelligence.

However, China has rejected the U.S. claims.

China’s commerce ministry said the allegations have no factual or legal basis. It also accused the U.S. of using double standards.

The ministry said distillation is a common technical method. Therefore, it is argued that using the process does not make an activity illegal.

China also claimed that some U.S. companies have used Chinese AI models through distillation.

At the same time, the ministry warned that China would respond if the U.S. used the issue to restrict Chinese AI companies.

A Chinese foreign ministry spokesperson also rejected the accusations. The spokesperson urged the U.S. to avoid what China called false claims.

Instead, China called for greater cooperation between the two countries. It said both nations have an important role in artificial intelligence.

The latest dispute follows a similar U.S. accusation in April. At that time, Washington made claims about large-scale theft of AI technology.

Now, the new dispute could add tension to U.S.-China relations. Both countries already compete over technology and artificial intelligence.

Overall, the dispute highlights the growing competition in the AI industry. It also raises questions about technology sharing, business competition, and national security.