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[TECHNOLOGY] · China, United States · 10 sources

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China uses US AI models to train military systems

Chinese military researchers are employing artificial‑intelligence models developed by U.S. firms such as OpenAI and Anthropic to build domestic defence‑grade AI. A Reuters investigation, based on more than 80 Chinese academic papers and patents and analysis by the Jamestown Foundation, found that the People’s Liberation Army (PLA) uses a technique called model distillation – extracting the outputs of large “teacher” models and training smaller “student” models that can run on local hardware without the massive compute required for frontier models.

The practice has been documented in several PLA units. Unit 96941 used OpenAI’s GPT‑3.5 to process and summarise sensitive military source code, then trained a home‑grown model to operate entirely within China’s internal networks. A defence university applied the same method to compress an image‑recognition model for unmanned aerial vehicles, enabling real‑time navigation and target identification even when communications are lost. In August 2026 the PLA Air Force unveiled an AI‑assisted strike‑planning system that can coordinate large‑scale air campaigns involving hundreds of targets and more than 100 tactical units, while keeping human commanders in charge of final decisions.

U.S. officials say the approach may circumvent export‑control rules and infringe intellectual‑property rights. Beijing rejects the accusations, arguing that the United States is pursuing an “AI hegemony” and noting that American companies also use similar techniques.

Entities

Alibaba Group · Anthropic · Jamestown Foundation · OpenAI · People's Liberation Army · People's Liberation Army (PLA) · Senior Colonel Deng Jianping · Unit 96941

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