US NSA Launches Major Restructuring Focused on AI and China

The US National Security Agency (NSA) is launching its largest internal restructuring in at least a decade to focus on AI, China, and other pressing challenges, the Washington Post has reported, citing current and former officials.

The NSA director, General Joshua M. Rudd, wants five additional organizations to be created within the agency by mid-October, with the goal that they reach full operational capacity in early 2027, the paper reported on Monday. Besides artificial intelligence and countering Beijing, they will deal with cybersecurity, combat support or warfighting, and global intelligence, according to Washington Post sources.

The NSA is believed to be the largest US intelligence agency, reportedly employing some 30,000 people, both military and civilian, and specializing in digital espionage abroad and at home. It found itself in hot water in 2013 after whistleblower Edward Snowden leaked a massive trove of files to the media detailing the agency’s illicit surveillance of American citizens.

Since becoming NSA chief in March, Rudd has been actively integrating AI into its operations, with reports earlier this year claiming the agency had been using Anthropic’s advanced Mythos model despite a federal ban and the Pentagon designating the firm a “supply chain risk.”

Rudd, who also heads the US Cyber Command within the Pentagon, believes that the “aggressive” overhaul is needed for the NSA to better suit its current and future priorities, officials said.

However, the director’s announcement that the heads of the five new departments could be selected from outside the agency is “unnerving NSA insiders,” they noted. It’s unclear if any appointments have been made so far, according to the sources.

The Washington Post noted that the previous major restructuring at the spy-service, known as “NSA 21,” which was initiated in 2016 under then-Director Mike Rogers, has not yet been completed, despite plans to roll it out in two years.

One source said there is also no coherent plan for the current reorganization. Rudd “admitted that they don’t know how they are going to do it, so they are going to rush into reversible decisions, in case it is wrong,” the official stressed.

The overhaul comes as Washington increasingly treats competition with China in artificial intelligence as a national security issue. Last week, the NSA, FBI, and Cybersecurity and Infrastructure Security Agency accused six Chinese AI companies, including DeepSeek and Alibaba, of conducting “industrial-scale” efforts to extract capabilities from leading US models.

The US agencies acknowledged that the so-called ‘distillation’ technique is widely used in AI development, but claimed the Chinese firms had employed it to close the technology gap with their American competitors, while avoiding billions of dollars in research and computing costs. Beijing rejected the accusations as groundless and accused Washington of seeking a “monopoly of the AI industry,” warning of “resolute countermeasures” if Chinese companies are targeted.