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U.S. firms are investing heavily in developing advanced AI models, but security vulnerabilities like distillation attacks pose a significant risk of intellectual property theft. These attacks aim to reverse-engineer AI models by extracting data from outputs, threatening the competitive edge of American tech companies. The lack of robust defenses against such threats raises concerns about long-term innovation costs and corporate profitability. This issue could impact investor confidence in U.S. tech stocks and influence global AI competition dynamics.
