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Chinese AI labs secretly used millions of Claude exchanges to train their models, Anthropic says

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Why This Matters

Anthropic is publicly accusing major Chinese AI labs — Alibaba, Moonshot and DeepSeek — of using fraudulent accounts to harvest Claude outputs at massive scale to train competing models, a practice it calls 'illicit distillation.' If accurate, it suggests frontier model capabilities can be cheaply cloned through API access, undermining the moat of expensive pretraining. It also raises privacy questions, since Anthropic says user and corporate data was silently routed to Claude without disclosure.

Key Takeaways
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Anthropic said it detected and disrupted unauthorized large-scale efforts by China-based AI labs including Alibaba , Moonshot and DeepSeek to train their models using Claude.

The U.S. AI company said in a threat intelligence report released Thursday that the firms were involved in what it described as "illicit distillation," a process in which outputs from a more capable AI model are used to train another model and replicate some of its capabilities without authorization.

"Some of these exchanges included sensitive information, including from individual users, major multinational companies, and state-affiliated actors ... These practices are likely inconsistent with privacy laws and the labs' own terms of service," according to the report.

Anthropic said operators affiliated with Alibaba used Claude outputs to help train its Qwen models, while Moonshot routed some Kimi user requests to Claude and used some of the resulting exchanges to train its own models.

The Alibaba operation was the largest distillation campaign Anthropic said it has measured, involving more than 151 million exchanges with Claude between May and July.

The activity peaked at nearly 3 million exchanges per day from more than 3,500 fraudulent accounts, according to the report. The company said Alibaba also used Claude for broader AI research, including reinforcement learning and model architecture.

Moonshot and DeepSeek

Anthropic also detailed activity involving Moonshot AI, the Beijing-based company behind the Kimi family of AI models.

Moonshot silently forwarded some customer requests intended for Kimi to Claude and then displayed Claude's responses to users, who thought they were using a Kimi model, according to the report.

In one 10-day period, Moonshot relayed nearly 300,000 customer requests to Anthropic, the vast majority of which were routed to Claude Opus models. The requests were routed through a network of 5,380 accounts that Anthropic described as fraudulent, most of which appeared to be located in Singapore and Japan.

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