Global AI Rivalry: Security Risks and Strategic Threats in Artificial Intelligence

25 March 2026

The growing global AI rivalry has raised serious security concerns, as American AI firm Anthropic accuses Chinese companies DeepSeek, Moonshot AI, and MiniMax of distilling advanced AI models. Simultaneously, the Pentagon labels Anthropic itself as a supply chain risk. This dispute highlights the dual-use nature of AI, its potential military applications, and the challenges of controlling powerful AI technologies. Understanding these strategic risks is critical for global innovation, governance, and ensuring responsible use of artificial intelligence in both civilian and military sectors.

Why in the News?

A major debate has emerged in the global Artificial Intelligence (AI) sector involving the American AI company

Anthropic

The company has asked that three Chinese AI firms —

DeepSeek

,

Moonshot AI

, and

MiniMax

— be treated as

national security threats

These firms are accused of

“distilling” advanced AI models developed by American companies

At the same time, the

Pentagon

has labelled Anthropic itself as a

“supply chain risk”

, raising concerns about how its AI technology is used in military operations.

The dispute highlights growing tensions over

AI technology, military use of AI, and global competition in artificial intelligence

What are the Key Highlights?

Accusations Against Chinese AI Labs

Anthropic has accused Chinese AI companies of copying knowledge from advanced American AI models.

The companies accused include:

DeepSeek

Moonshot AI

MiniMax

What is AI Distillation?

Distillation means

teaching a smaller AI model using answers from a more powerful model

The weaker model asks many questions to the stronger model.

It learns patterns from the responses and improves its own performance.

Large-Scale Distillation Allegation

in Global AI Rivalry

According to

Anthropic

, the Chinese labs conducted distillation on a massive scale.

Around

16 million interactions

were made with Anthropic’s AI model

Claude

These interactions were carried out using

around 24,000 fake accounts

Use of AI in Military Operations

AI systems developed by companies such as

Anthropic

,

OpenAI

,

Google

, and

xAI

have reportedly been used by the U.S. military.

These systems helped speed up the

“kill chain”

, which includes:

Identifying targets

Legal approval

Carrying out military strikes.

Pentagon’s Supply Chain Risk Label

The

Pentagon

labelled Anthropic as a

supply chain risk

This label is usually used for companies linked with foreign adversaries.

Anthropic has challenged this designation in court.

Debate on AI as a Strategic Technology

Some policymakers compare

generative AI

to nuclear weapons.

The argument is that AI should be tightly controlled to prevent dangerous proliferation.

However, AI is also a

general-purpose technology

, similar to semiconductors.

Difficulty of Controlling AI Technology

AI research mostly happens in the

private sector

Many researchers move between countries and companies.

Export controls on

semiconductors

have already been partially bypassed.

Limits of Restrictions

The success of

DeepSeek

in building strong models at lower cost shows that restrictions are not always effective.

This demonstrates how quickly AI technologies can spread.

What are the Significance?

Rising Global Competition in Artificial Intelligence

The dispute shows the

intense competition between the United States and China in AI technology

AI leadership is increasingly seen as a

strategic advantage in global power politics

AI as a Dual-Use Technology

AI has

both civilian and military applications

The same technology used for chatbots or research can also be used for:

Surveillance

Cyberwarfare

Autonomous weapons.

Expansion of AI in Military Systems

AI is already being used in military operations to

speed up decision-making processes

The use of AI in the “kill chain” shows how technology can change modern warfare.

Weakness of Corporate Guardrails

Companies sometimes create

rules or restrictions on how their AI can be used

However, governments or military organisations can pressure companies to change these rules.

This shows that

corporate rules alone cannot control powerful technologies

Increasing Market Power of Large AI Companies

A coordinated response among AI firms, cloud providers, and policymakers may

strengthen the dominance of a few large companies

This can reduce competition and innovation.

Debate Over Intellectual Property in AI

AI companies argue that distillation is

intellectual property theft

However, critics point out that AI models themselves are trained using

This raises questions about

fairness and ownership in AI development

Impact on Global Innovation and Collaboration

Strict technology restrictions can reduce

scientific collaboration and innovation

They may also limit the spread of useful AI tools for

economic development and research

Challenges

Difficulty in Controlling AI Technology

AI models are

mathematical systems that can easily be copied or replicated

This makes it difficult to control their global spread.

Talent Mobility

Many AI researchers trained in the U.S. now work in companies across the world.

This makes it difficult for governments to restrict knowledge transfer.

Ineffective Export Controls

Restrictions on

semiconductors and AI tools

have been bypassed in many cases.

Companies and countries often find alternative solutions.

Risk of Military Misuse

AI can be used in

autonomous weapons, surveillance, and cyberwarfare

This raises serious ethical and security concerns.

Growing Corporate Dominance

A small number of companies control the most powerful AI systems.

This concentration of power can influence global technology governance.

Weak Global Governance Framework

There are

no universal global rules for the military use of AI

Different countries follow different standards.

Way Forward

Establish International AI Governance

Countries should create

global agreements on responsible AI use

These agreements should include:

Rules on military applications

Ethical guidelines for AI deployment.

Ensure Human Control in Military AI

AI systems used in warfare should operate under

meaningful human control

Humans must remain responsible for

lethal decisions

Prohibit Mass Civilian Surveillance

Governments should agree to

limit large-scale surveillance using AI technologies

This will protect civil liberties and human rights.

Develop Transparent Technical Standards

AI systems used in sensitive areas should follow

auditable technical standards

Independent audits can verify that systems operate safely.

Promote Responsible Innovation

Governments and companies should balance

innovation with safety regulations

Policies should encourage open research while preventing misuse.

Encourage Global Cooperation

Countries should cooperate through

multilateral and plurilateral agreements

These agreements must apply to all major powers to be effective.

Conclusion

The rapid growth of artificial intelligence is reshaping technological competition and security thinking across the world. Managing this transformation requires strong cooperation among governments, researchers, and industry so that the benefits of AI can be realised without creating new global risks.

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