logo
    • Buy Crypto
    • Markets
    • Futures
    • Spot
    • Earn
    • Affiliates & AI
    • More
    1. WEEX
    2. Crypto News
    3. New Trick Exposes Hidden Thoughts of AI and Revives Distillation War

    New Trick Exposes Hidden Thoughts of AI and Revives Distillation War

    By: rootdata|2026/08/11 21:23:21
    0
    Share
    copy
    Prefer us on GooglePrefer us on Google
     

    A computer trick allows the 'thinking' of cutting-edge AI models to be laid bare, revealing possible covert distillations and data leaks. Researchers demonstrate that smaller versions of the models can expose their hidden reasoning.


    • Researchers discover vulnerability in APIs of OpenAI, Anthropic, and Google that exposes the internal reasoning of AI models.
    • The method allows distillation of information from closed models and recovery of passwords and API keys, although it has already been patched.
    • Distillation becomes a geopolitical issue as China and the U.S. compete for supremacy in AI.

    A new computer trick allows the internal reasoning of the most advanced artificial intelligence models to be exposed, revealing secrets that tech companies try to protect. According to a Wired article, recent research has uncovered a vulnerability in the APIs of OpenAI, Anthropic, and Google that not only facilitates large-scale distillation but can also leak passwords and API keys.

    The method, developed by scientists from the University of Tübingen, the Max Planck Institute, MATS Research, and the company Snyk, allows the extraction of the hidden "thoughts" of cutting-edge models. Although the vulnerability has already been patched, the finding provides evidence—albeit not conclusive—that some Chinese models may have been trained by distilling reasoning information from U.S. models.

    The Trick that Exposes AI Reasoning

    Advanced AI models solve difficult problems by breaking them down into parts that they analyze in an artificial "chain of thought." Companies keep that reasoning secret but send an encrypted version to the user's computer to transfer part of the computation.

    The researchers' attack is based on the fact that most companies offer models of different sizes. Smaller models are weaker but also less aligned, meaning they are more willing to reveal their internal thoughts.

    Feeding the encrypted reasoning traces to a smaller version of the same model can reveal the hidden reasoning, explains Alexander Panfilov, a computer scientist at the University of Tübingen. "All the major frontier model providers we tested share this vulnerability," he warns.

    Panfilov and his colleagues tested the models of OpenAI, Anthropic, and Google through their APIs and found the same issue. They also demonstrated that the method could extract secret information, such as API keys and passwords embedded in the reasoning traces.

    "The idea of exchanging messages to a weaker model variant that has the same decryption key but weaker alignment is brilliant," comments Florian Tramer, a cybersecurity scientist at ETH Zurich. "It is definitely becoming a problem," he adds.

    The Controversy of Distillation

    Distillation is a well-established technique for efficiently copying the capabilities of existing models to new ones. It is especially common in the development of open-weight or fully downloadable models.

    Recently, distillation has become a controversial topic due to claims that Chinese AI companies use it to copy the best U.S. models. In February, OpenAI told U.S. lawmakers that DeepSeek appeared to have copied one of its models to build the R1.

    In June, Anthropic told lawmakers that Alibaba had systematically distilled its models to build its own, called Qwen. There is no indication that they have used this specific technique, but researchers believe that their method would allow for more information to be distilled from closed models than previously thought.

    Mark Zuckerberg, CEO of Meta, stated that distillation is an important principle of how the open-source ecosystem functions. He warned that restricting this practice would put the United States at a disadvantage.

    On the other hand, Kyle Miller, a researcher at the Center for Security and Emerging Technologies, says it is unclear how much distillation actually helps China. "If the ability of Chinese labs to distill were eliminated, the competitive landscape would not change drastically," he claims.

    Researchers fed each model 90 questions to check if the open-weight models were distilling from the closed ones. By providing the first words of the captured reasoning traces, they sometimes found that the open models generated remarkably similar responses.

    Evidence of Similarity and Reactions

    The Chinese open-weight model Kimi K3, from Moonshot AI, produced an output surprisingly similar to the hidden reasoning traces of Claude Opus 4.8 and GPT 5.6 Sol for certain prompts. Despite the similarities, researchers point out that the work cannot causally establish distillation.

    Two other open-weight models, DeepSeek from China and Inkling from the American company Thinking Machines, did not show this similarity. Moonshot AI and Z.ai did not respond to requests for comments.

    There had been prior speculation on Chinese social media about the possibility of discovering and using hidden reasoning traces for distillation. Yarin Gal, a computer scientist at the University of Oxford, says that distillation is not only widespread but has also helped AI advance more rapidly.

    Companies have already taken action: Panfilov and his co-authors alerted OpenAI, Anthropic, and Google, and each has adjusted its API to mitigate the issue. Michael Aciman, a spokesperson for Anthropic, stated that they value independent research and have begun developing short-term mitigations.

    Google and OpenAI declined to comment. Panfilov adds that fully correcting distillation would require a fundamental review of how APIs function.

    Geopolitical and Security Implications

    Distillation has become a matter of geopolitical importance as the United States and China compete for supremacy in AI. Hardline hawks on China claim that the country gains a strategic advantage by distilling U.S. technology.

    Others argue that distillation is a widely used way to rapidly boost the capabilities of an AI model. Zuckerberg defends this practice from an open-source perspective.

    Kyle Miller points out that it only improves the capabilities of existing models to a limited degree and that Chinese companies seem to have the expertise necessary to build cutting-edge models from scratch. "No one here in the U.S. knows how much distillation is benefiting Chinese labs," he says.

    Researchers also highlight that the method could be used to recover personal information, although that vulnerability has already been addressed. However, some reasoning traces may still be discoverable using the same method.

    Panfilov and his collaborators claim that using their method would allow for the distillation of more information from closed models than previously thought. This could have significant implications for intellectual property in the AI industry.

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

    You may also like

    BlackRock Cuts IBIT In-Kind Conversion Minimum To $1M

    BlackRock Cuts IBIT In-Kind Conversion Minimum To $1M

    Claude AI Exploits Vulnerability in Australia

    Claude AI Exploits Vulnerability in Australia

    Should Bitcoin Companies Build USD Reserves? Understanding The Truth

    Should Bitcoin Companies Build USD Reserves? Understanding The Truth

    Strategy is acquiring more cash than bitcoin these days. This is what's really going on and whether other Bitcoin companies should follow suit.
    Institutional Capital Returns to Bitcoin, but the Spot Market Remains Weak

    Institutional Capital Returns to Bitcoin, but the Spot Market Remains Weak

    Flowdesk secures full broker-dealer license in Dubai

    Flowdesk secures full broker-dealer license in Dubai

    Kazakhstan Exempts Digital Asset Investment Gains from Taxes for Three Years

    Kazakhstan Exempts Digital Asset Investment Gains from Taxes for Three Years

    Jennifer Bailey Leaves Apple Pay: The Payments Architect Retires

    Jennifer Bailey Leaves Apple Pay: The Payments Architect Retires

    Jennifer Bailey, the executive who launched Apple Pay in 2014, is retiring after more than 25 years at Apple. Her departure marks the beginning of a wave of retirements among top executives as Tim Cook prepares to hand over the reins to John Ternus.
    Web3: Brazilian Banking Giant Itaú Joins Bond and Fund Tokenization Pilot

    Web3: Brazilian Banking Giant Itaú Joins Bond and Fund Tokenization Pilot

    SharpLink Reports $394M Q2 Loss As Ethereum Revaluation Hits Results

    SharpLink Reports $394M Q2 Loss As Ethereum Revaluation Hits Results

    Bitwise Solana ETF approved for loans at 25% LTV

    Bitwise Solana ETF approved for loans at 25% LTV

    Palantir Raises Target Price After Beating Earnings Expectations

    Palantir Raises Target Price After Beating Earnings Expectations

    ENS Foundation takes administrative control of $65 million Endowment following tokenholder vote

    ENS Foundation takes administrative control of $65 million Endowment following tokenholder vote

    Standard Chartered Sees 4 DeFi Tokens Outperforming Bitcoin by 2030

    Standard Chartered Sees 4 DeFi Tokens Outperforming Bitcoin by 2030

    Standard Chartered sees 4 DeFi tokens outperforming Bitcoin by 2030. Discover the targets for LINK, UNI, AAVE, and MORPHO.
    Ukrainian FPV Drones to Be Produced in the USA: How F-Drones Joined the Pentagon Program

    Ukrainian FPV Drones to Be Produced in the USA: How F-Drones Joined the Pentagon Program

    Italian Scientists Test Circular Slit Spectrometer During Total Solar Eclipse

    Italian Scientists Test Circular Slit Spectrometer During Total Solar Eclipse

    Italian scientists have transported a revolutionary spectrometer to the Javalambre Observatory in Spain for a definitive test during the total solar eclipse on August 12. The instrument, called CISS, promises to capture the entire solar corona in a single image, but there will be no second chance.
    EU Scaleup Europe Fund Launched, First Investment in Satellite Company ICEYE

    EU Scaleup Europe Fund Launched, First Investment in Satellite Company ICEYE

    "Interest Added to Principal Became a Bomb"... U.S. Private Credit Sees Sharp Decline in PIK Loans

    "Interest Added to Principal Became a Bomb"... U.S. Private Credit Sees Sharp Decline in PIK Loans

    Pakistan: "Agreement on Hormuz Imminent"... US and Iran Remain at Odds

    Pakistan: "Agreement on Hormuz Imminent"... US and Iran Remain at Odds

    "Superpowers of Invention for Everyone"... Zuckerberg Envisions an Era of 'One AI Agent per Person'

    "Superpowers of Invention for Everyone"... Zuckerberg Envisions an Era of 'One AI Agent per Person'

    Strategy CEO says Bitcoin holdings will grow again in 2026

    Strategy CEO says Bitcoin holdings will grow again in 2026

    AI: The Time for Accountability Has Come, and Stablecoins Charge by the Millisecond

    AI: The Time for Accountability Has Come, and Stablecoins Charge by the Millisecond

    AI: 75% of American entrepreneurs have adopted it, a third cut their budget due to lack of evidence. Stablecoins and the x402 protocol are changing the game.
    California Will Not Touch a Cent of Ohtani's $680 Million: The Law That Protects Your 401(k)

    California Will Not Touch a Cent of Ohtani's $680 Million: The Law That Protects Your 401(k)

    A federal law from 1996 prevents California from taxing the retirement income of non-residents. The same protection that covers Shohei Ohtani's $680 million in deferred income also safeguards your 401(k) if you move to another state. We explain how it works and how to secure your money.
    Grayscale Predicts XRP SWIFT Acquisition in 2026 – Should You Buy Ripple Now?

    Grayscale Predicts XRP SWIFT Acquisition in 2026 – Should You Buy Ripple Now?

    The new SWIFT ledger coordinates but does not yet provide definitive 24/7 settlement, which is precisely what Ripple aims for. December 2026 and July 2027 are the benchmarks for the XRP price.
    Apple to Introduce Ad-Free Block Blast for Apple Arcade

    Apple to Introduce Ad-Free Block Blast for Apple Arcade

    web3: US July CPI to be Released, Bitcoin and Market Await Direction

    web3: US July CPI to be Released, Bitcoin and Market Await Direction

    Web3: Foreign Media Reports That If U.S. Crypto Bill Resurfaces, Democrats May Lead the Agenda

    Web3: Foreign Media Reports That If U.S. Crypto Bill Resurfaces, Democrats May Lead the Agenda

    Bitcoin and Ondo: Key Levels to Watch After Recent Correction

    Bitcoin and Ondo: Key Levels to Watch After Recent Correction

    Ousted Pudgy Penguins Co-Founder Sells Out 44,444-Piece NFT Mint on Robinhood Chain

    Ousted Pudgy Penguins Co-Founder Sells Out 44,444-Piece NFT Mint on Robinhood Chain

    Hyperliquid is Struggling to Kill HyperEVM

    Hyperliquid is Struggling to Kill HyperEVM

    The capital on Hyperliquid is increasingly for trading rather than farming.
    Chainlink vs Pyth Network Whitepaper Comparison: Which Oracle Network Has the Stronger Future?

    Chainlink vs Pyth Network Whitepaper Comparison: Which Oracle Network Has the Stronger Future?

    BlackRock Cuts IBIT In-Kind Conversion Minimum To $1M

    Claude AI Exploits Vulnerability in Australia

    Should Bitcoin Companies Build USD Reserves? Understanding The Truth

    Strategy is acquiring more cash than bitcoin these days. This is what's really going on and whether other Bitcoin companies should follow suit.

    Institutional Capital Returns to Bitcoin, but the Spot Market Remains Weak

    Flowdesk secures full broker-dealer license in Dubai

    Kazakhstan Exempts Digital Asset Investment Gains from Taxes for Three Years

    ...
    Invite friends, get rewards
    Invite to get up to $160 + 40% commission
    Invite

    Latest articles

    2026/08/11

    BlackRock Cuts IBIT In-Kind Conversion Minimum To $1M

    2026/08/11

    New Trick Exposes Hidden Thoughts of AI and Revives Distillation War

    A computer trick allows the 'thinking' of cutting-edge AI models to be laid bare, revealing possible covert distillations and data leaks. Researchers demonstrate that smaller versions of the models can expose their hidden reasoning.
    2026/08/11

    Claude AI Exploits Vulnerability in Australia

    2026/08/11

    Should Bitcoin Companies Build USD Reserves? Understanding The Truth

    Strategy is acquiring more cash than bitcoin these days. This is what's really going on and whether other Bitcoin companies should follow suit.
    2026/08/11

    Institutional Capital Returns to Bitcoin, but the Spot Market Remains Weak

    More

    Latest coin listings on WEEX

    logoCommunity
    iconiconiconiconiconiconicon
    Customer Support:@weikecs
    Business Cooperation:@weikecs
    Quant Trading & MM:bd@weex.com
    VIP Program:support@weex.com
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Customer Support Bot
    • VIP Services
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Customer Support Bot
    • VIP Services
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE

    Where new wealth is made

    Download app

    Sign Up
    h5 logo
    Download