Anthropic accuses Alibaba of stealing Claude AI secrets through 28.8 million fraudulent queries

Reviewed byNidhi Govil

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Anthropic has accused groups linked to Alibaba and its Qwen AI lab of running the largest known model distillation campaign against Claude AI. The alleged operation used nearly 25,000 fraudulent accounts to generate over 28.8 million interactions, systematically extracting proprietary capabilities without incurring training costs. The accusations set the stage for a new AI war over intellectual property and raise questions about how AI companies can protect their models from being copied through conversations alone.

Anthropic Accuses Alibaba of Massive Model Theft Campaign

Anthropic has leveled serious allegations against groups linked to Alibaba and its Qwen AI lab, accusing them of conducting the largest known attempt to copy Claude AI through a technique called model distillation

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. In a letter to U.S. lawmakers, the AI developer claimed that Alibaba used nearly 25,000 fraudulent accounts to generate more than 28.8 million interactions with Claude between April 22 and June 5

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. The alleged campaign aimed to extract detailed, proprietary information about Claude's advanced software engineering and agentic reasoning features, effectively transferring years of research and development work for almost nothing

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Source: PYMNTS

Source: PYMNTS

While Alibaba has not publicly responded to the allegations and there has been no independent confirmation of Anthropic's claims, simply leveling them has potentially enormous consequences for the AI industry. The scale of this alleged operation dwarfs previous incidents—in February, Anthropic named three Chinese AI labs, DeepSeek, Moonshot AI, and MiniMax, as having collectively generated more than 16 million Claude interactions through roughly 24,000 fraudulent accounts

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. The alleged Alibaba campaign surpassed that combined total in just six weeks.

How Model Distillation Turns Conversations Into Reverse Engineering

Model distillation works by sending large volumes of carefully designed prompts to a target model and capturing its responses. Those responses become training data that allows a competing model to learn reasoning patterns and replicate the original's behavior without paying for the research behind it

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. The technique reveals a fundamental vulnerability in frontier AI models: they inadvertently share deliberately obscured facts about themselves when asked the right questions at massive scale

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Detection proves exceptionally difficult because a distillation query looks identical to a legitimate one. The only signal is pattern recognition: massive volume, repetitive structures, and prompts targeting the same narrow capabilities arriving from hundreds of coordinated accounts in sequence

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. As Google's Threat Intelligence Group warned in a February blog post, "As organizations increasingly integrate LLMs into their core operations, the proprietary logic and specialized training of these models have emerged as high-value targets"

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The AI Arms Race Over Interaction-Based Extraction

The allegations highlight a critical problem for AI developers: if frontier AI models can be imitated through industrial-scale model theft, spending billions of dollars training them starts to seem wasteful

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. Beyond commercial concerns, there's a safety dimension. When a lab distills a frontier model without permission, the copy does not inherit the safety guardrails built into the original—dangerous capabilities transfer through outputs while months spent making the model refuse harmful requests do not

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The conundrum is obvious: large language models are designed to answer questions, and every answer teaches the user something about how the model behaves. You can't interact with an AI model without it giving up some information about itself

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. At the scale Anthropic is claiming, normal conversations become reverse-engineer operations.

Source: TechRadar

Source: TechRadar

Anthropic Pushes Congress for Legal Action Against Model Theft

In a letter to senators, Anthropic's Head of Policy Sarah Heck said the attacks were carried out "illicitly, systematically, and at industrial scale to harvest U.S. AI capabilities across frontier labs and repackage them as their own without incurring the training and R&D costs" . Anthropic asked lawmakers to take action and combat this problem as soon as possible, warning that if leading models can be imitated so easily, there won't be much incentive to innovate

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House Republicans are seeking sanctions on Chinese companies that copy American-made AI models. Sen. Bill Hagerty and Sen. Andy Kim are moving to add an amendment to defense legislation that would blacklist or sanction entities found conducting such campaigns

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. The White House Office of Science and Technology Policy issued a memorandum in April warning of industrial-scale foreign distillation of U.S. AI models

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What This Means for the Future of AI Competition

Whether Anthropic ultimately proves its allegations, they have revealed that the next great AI war may not be about building the smartest model but about stopping somebody else from talking to your model and learning how it operates, one question at a time

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. The structural problem goes beyond any single campaign. If adversarial distillation becomes routine, AI labs may find themselves spending as much on access controls and identity verification as they do on training, treating every API call as a potential intelligence transfer rather than a revenue event

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