Anthropic accuses Alibaba of massive campaign to steal Claude AI capabilities with fake accounts

Reviewed byNidhi Govil

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Anthropic has accused Alibaba of orchestrating the largest known distillation attack against its Claude AI models, using nearly 25,000 fraudulent accounts to generate 28.8 million exchanges between April and June 2026. The US AI company claims the Chinese tech giant brazenly defied Trump administration warnings to illicitly extract valuable AI capabilities without incurring training costs.

Anthropic Reports Largest Known Campaign Against Claude AI

Anthropic has leveled serious accusations against Alibaba, claiming the Chinese tech giant conducted the largest known distillation attack on its Claude AI models to date. According to a June 10 letter sent to Senators Tim Scott and Elizabeth Warren of the Senate Banking Committee, operators affiliated with Alibaba and Qwen, Alibaba's AI lab, generated more than 28.8 million exchanges with Claude through almost 25,000 fraudulent accounts between April 22 and June 5, 2026

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. The letter arrived one day ahead of a Senate committee hearing on "AI and the American Dream," where the US AI company shared what it described as "new, confidential evidence" of this massive model extraction campaign

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Source: Benzinga

Source: Benzinga

Chinese AI Competitors Target Valuable Capabilities Through Distillation Attack

The campaign specifically targeted some of Claude's most valuable capabilities, including agentic reasoning, software engineering, and long-horizon tasks, according to Anthropic's allegations

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. Distillation attacks represent a method where Chinese AI competitors train less capable models on outputs from stronger ones, allowing them to illicitly extract AI capabilities without incurring the substantial training and R&D costs required to develop frontier models independently

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. Alibaba allegedly evaded detection by deploying obfuscation techniques and proxy networks, contributing to what Anthropic warns is "a growing circumvention economy" designed to fuel an expanding web of future model theft attempts

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Attack Occurred Despite Trump Administration Warnings

What makes this incident particularly significant is its timing. The Alibaba campaign unfolded after President Donald Trump took steps to curb illicit distillation attacks and defend US national security. In April, Trump accused China of "industrial-scale" AI theft following Anthropic's earlier report that Chinese firms DeepSeek, Moonshot, and MiniMax had used similar tactics to generate over 16 million exchanges with Claude through approximately 24,000 fraudulent accounts

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. Anthropic accused Alibaba of "brazenly" racing to create a copycat Claude, seemingly unfazed by Trump's threats despite the company's dependence on US investors

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. The company noted that Alibaba is listed on the New York Stock Exchange, maintains business operations in the United States, and is accountable to US investors and regulators, yet this activity continued in the weeks after Trump's memo warned that cloning attempts were "unacceptable"

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Source: Benzinga

Source: Benzinga

Anthropic Deploys Covert Code to Catch Model Theft

In response to the escalating threat, Anthropic had implemented hidden defenses within Claude Code several months prior to detect unauthorized usage. According to engineer Thariq Shihipar, the company launched an experiment in March using steganography—hiding secret data in plain sight—to catch account abuse from unauthorized resellers and protect against distillation

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. The covert code checked Claude Code's base URL, system timezone, and whether hostnames matched entries in a list of known Chinese AI labs, other AI companies, account resellers, and gateway domains

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. However, Anthropic announced plans to remove this hidden tracking mechanism on July 1, stating that "the team has landed stronger mitigations since then"

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Source: Gizmodo

Source: Gizmodo

Congressional Action Urged to Protect US AI Leadership

Anthropic warned that without stronger interventions, these attacks will help China reach advanced AI capabilities sooner, turning "hundreds of billions of dollars in American investment and R&D into a massive subsidy for our geopolitical competitors"

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. The company recommended Congress pass legislation with three key objectives: updating antitrust laws to allow AI firms to share information about evolving Chinese tactics, implementing stronger export controls on chips to limit Chinese access to advanced compute, and establishing penalties that make it more difficult and costly for Chinese labs to rely on distillation attacks

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. An Anthropic spokesperson emphasized that "combating the threat of illicit distillation requires coordinated action between government and industry"

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. Alibaba has not responded to requests for comment on the allegations, though the company filed a lawsuit Tuesday seeking to remove a Trump administration designation linking it to the Chinese military

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