SynopsisChinese AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI face fresh scrutiny after US agencies accused them of using American AI models to improve their systems through knowledge distillation. Beijing rejected the allegations, calling distillation common practice, as the dispute threatens to deepen tensions between the US and China.Chinese AI companies have come under fresh scrutiny after American security agencies accused them of using advanced AI models developed by US companies to improve their own systems.The fresh allegations have brought companies such as DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI at the centre of a growing tech dispute between the US and China.What is the controversy?In a release on Tuesday, US agencies including the CybersecurityNow Playing