US sanctions five Chinese firms over AI theft

The sanctions specifically target entities associated with Linwei Ding, who was convicted of stealing thousands of pages of Google's confidential AI technology. Shanghai Zhisuan Technology Co Ltd, a company Ding established in 2023, is cited for its reported role in benefiting from the stolen trade secrets. Ding promoted its ability to accelerate machine-learning workloads and replicate Google's superintelligence infrastructure technology for use in China.

MiraclePlus, a Beijing-based venture capital firm, provided seed funding to Zhisuan in exchange for an ownership stake. The State Department stated that MiraclePlus provided financial or other support connected to the theft. Two venture capital funds managed by MiraclePlus (Beijing Qiji Chuangtan Phase I Venture Capital Center Limited Partnership and Beijing Qiji Chuangtan Phase II Venture Capital Center Limited Partnership) and an entity wholly owned by Phase I (Beijing Qiji Chuangtan Zhiyuan Enterprise Management Center Limited Partnership) were also designated due to their ownership or control relationships with MiraclePlus.

This action extends Washington's response beyond Ding's criminal conviction to include the corporate and financial entities involved. The US State Department views trade secret theft as a serious threat to American economic, foreign policy, and national security interests, particularly concerning sensitive and emerging technologies. The sanctions aim to counter actions perceived as undermining American innovation and competitiveness.

The case illustrates the US government's use of specific legislation, PAIPA, to target foreign entities involved in intellectual property theft. The investigation involved collaboration between the Justice Department and the Federal Bureau of Investigation, indicating a coordinated effort to address such incidents.