U.S. intelligence agencies have raised concerns about China’s potential use of AI for extensive data collection on Americans, extending beyond traditional intellectual property theft.
In July 2018, Xiaolang Zhang was detained by federal agents at San Jose, California’s airport as he was about to board a flight to Beijing.
Zhang, a former Apple employee, was arrested for allegedly stealing trade secrets from Apple‘s self-driving car program, following a report to Apple’s security team.
This incident is part of the larger competition between the U.S. and China for dominance in artificial intelligence (AI). Both countries recognize AI’s potential to transform economies, geopolitics, and warfare.
The FBI has identified AI as a critical technology requiring protection in the U.S., while China aims for significant advancements in AI by 2025.
FBI Director Christopher Wray highlighted China’s suspected involvement in major personal data thefts and the potential use of AI to enhance hacking operations.
China, however, denies these hacking allegations. Chinese Foreign Ministry spokesperson Wang Wenbin countered U.S. claims by labeling the U.S. as the leading secret thief.
The FBI’s strategy in safeguarding U.S. AI innovation has recently shifted towards focusing on chipmakers capable of running AI programs rather than AI companies themselves. This approach takes into account the rapid obsolescence of stolen algorithms due to ongoing advancements in the field.
In a related case, Applied Materials, a chip manufacturing technology supplier, accused its Chinese-owned competitor, Mattson Technology, of trade secret theft by a former Applied Materials engineer who later joined Mattson.
Although the case has attracted federal prosecutors’ attention, no criminal charges have been filed. Mattson, which was acquired by a Beijing-based investment institution in 2016, denies any wrongdoing and states they have not been contacted by federal agencies regarding the issue.
This ongoing litigation includes a counter-suit by Mattson against Applied Materials, alleging patent infringement. Amidst rising concerns about China’s use of AI, the director of the FBI and other Western intelligence leaders met with technology experts in October to discuss these issues.
