Anthropic Exposes Massive Chinese AI Data Theft

Anthropic has released a report alleging large-scale distillation attacks by Chinese AI companies including Alibaba, Moonshot AI, and DeepSeek. The attacks, which involved nearly 200 million exchanges across five campaigns, used sophisticated techniques to trick Claude into revealing its internal reasoning, which was then used to train rival models. The largest campaign, attributed to Alibaba, involved 151 million exchanges across 3,500 accounts between May and July 2026. A separate Moonshot AI campaign appeared to route requests from the Chinese military, including surveillance analysis tasks, through 5,000 accounts targeting Claude's Opus model.