The White House has said it will work more closely with US artificial intelligence (AI) firms to combat 'industrial-scale campaigns' by foreign actors to steal advances in the technology. Michael Kratsios, Director of Science and Technology Policy, wrote in an internal memo that the administration had new information indicating 'foreign entities, principally based in China' were exploiting American firms. Through a process called 'distilling', such firms are essentially copying AI technology developed by US companies, he said. A representative of China's US embassy in Washington DC said its development was 'the result of its own dedication and effort as well as international cooperation'. In the memo, Kratsios said the aim was to 'systematically undermine American research and development and access proprietary information'. To combat this, the White House will share more information regarding distillation tactics and work to coordinate with AI companies, develop best practices, and explore accountability for foreign actions. The memo did not detail plans for addressing foreign entities engaged in theft. Following the memo, a spokesperson for the White House declined to comment further. Representatives from China's embassy rebutted the memo's claims, arguing that China is emerging as a leader in global innovation through its own efforts. Distillation campaigns typically involve firms creating multiple user accounts to manipulate AI tools and extract sensitive information. As countermeasures evolve, Kratsios expressed doubts over the sustainability of AI models built on stolen foundations, while open AI firms like OpenAI and Anthropic deal with similar distillation threats.