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Anthropic says Alibaba illicitly extracted Claude AI model capabilities - Finance news and analysis from Global Banking & Finance Review
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Anthropic says Alibaba illicitly extracted Claude AI model capabilities

Published by Global Banking & Finance Review

Posted on June 24, 2026

3 min read

· Last updated: June 24, 2026

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Anthropic says Alibaba illicitly extracted Claude AI model capabilities

Details of the Alleged Extraction and Industry Response

By Karen Freifeld

June 24 (Reuters) - U.S. AI company Anthropic accused Alibaba, the Chinese technology and e-commerce giant, of illicitly extracting its Claude AI model capabilities in what it said was the largest known attack of its kind on the company, according to a letter seen by Reuters.

Nature of the Attack

The strike by Alibaba is described as a "distillation" effort, which Anthropic has said involves training a less capable model on the outputs of a stronger one.

Scope and Timeline of the Campaign

Anthropic said the campaign was conducted between April 22 and June 5, 2026, and generated more than 28.8 million exchanges with Claude through almost 25,000 fraudulent accounts.

Purpose and Affiliations

Anthropic said in the letter that distillation is a way to help accelerate China's ability to reach Anthropic's advanced Mythos Preview capabilities.

It said the campaign was conducted by operators affiliated with Alibaba and Alibaba Qwen, Alibaba's AI lab. Alibaba did not immediately respond to a request for comment.

Official Correspondence and Government Involvement

The letter, dated June 10, was sent to Senators Tim Scott and Elizabeth Warren, the chair and ranking member, respectively, of the U.S. Senate Banking Committee, ahead of a scheduled hearing on AI.

Context of U.S.-China AI Tensions

In April, the White House accused China of stealing U.S. AI labs' intellectual property on an industrial scale.

Anthropic's Support for U.S. Government Efforts

Anthropic said in the letter it was supportive of the U.S. government's efforts to combat the attacks, including partnering with private sector AI companies through threat-intelligence sharing and other exercises.

Other Incidents Involving Chinese AI Labs

Anthropic said in a February posting that it had identified a campaign by Chinese AI startup DeepSeek — whose low-cost AI model sent shockwaves through the technology world in January 2025 — and two other Chinese AI labs to illicitly extract capabilities from its Claude AI platform.

Scale of Operations by DeepSeek and Others

It said DeepSeek's operation involved over 150,000 exchanges, while Moonshot AI was at a scale of over 3.4 million and MiniMax over 13 million.

Growing Threat and Industry Response

It also said at the time that the campaigns were growing in "intensity and sophistication" and that addressing the threat would require "rapid, coordinated action among industry players, policymakers and the global AI community."

U.S. Government Actions and Ongoing Concerns

Alibaba's Military Designation

Alibaba was added to the Pentagon's Chinese military companies list this month, a designation it is challenging.

Commerce Department Decisions

But the Commerce Department has held off placing DeepSeek on a trade blacklist, as Reuters exclusively reported this month, despite it being deemed a national security risk by an interagency governmental committee, as the department tries to avoid escalating tensions with Beijing.

Restrictions on Anthropic's AI Models

Meanwhile, on June 12, two days after Anthropic sent the letter, the Commerce Department imposed controversial restrictions on Anthropic's latest Mythos and Fable AI models because officials feared they could be deployed by military intelligence users in China and other countries of concern. The restrictions resulted in Anthropic disabling access to the models globally.

Reporting Credits

(Reporting by Karen Freifeld; additional reporting by David Shepardson; Editing by Sonali Paul)

Key Takeaways

  • Anthropic alleges Alibaba conducted a large‑scale distillation attack on Claude, marking the biggest known campaign against Anthropic to date
  • The incident mirrors earlier distillation operations by DeepSeek, Moonshot and MiniMax involving 24,000 fake accounts and 16 million exchanges targeting reasoning, tool‑use and coding abilities (investing.com)
  • Such attacks bypass model safeguards and amplify risks tied to AI proliferation, reinforcing calls for coordinated industry, cloud provider and policy responses (anthropic.com)

References

Frequently Asked Questions

What did Anthropic accuse Alibaba of?
Anthropic accused Alibaba of illicitly extracting the capabilities of its Claude AI model.
What is significant about this incident?
This is described as the largest known distillation attack on Anthropic to date.
Who reported on Anthropic's accusation against Alibaba?
Reuters reported on the incident, quoting a letter seen by its journalists.
Which AI model was involved in the alleged extraction by Alibaba?
The AI model involved was Anthropic's Claude.
What type of attack did Alibaba allegedly use on Claude?
Alibaba allegedly used a distillation attack to extract AI model capabilities.

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