Anthropic has released a report accusing three Chinese AI firms – DeepSeek, Moonshot, and MiniMax – of orchestrating large-scale efforts to extract proprietary capabilities from Claude models. Anthropic calls these “industrial-scale distillation attacks,” highlighting more than 24,000 fraudulent accounts generating over 16 million exchanges to replicate Claude’s reasoning and tool-use logic.
The company warns that illicitly distilled models bypass alignment and safety layers, creating national security risks and potential misuse in military, intelligence, and surveillance systems. Anthropic argues these campaigns are accelerating, forcing labs to tighten access and control over high-value reasoning traces.
The episode spotlights a growing tension in AI: frontier models are no longer just built from scraped internet data – they themselves have become the most valuable data worth stealing and protecting, raising questions about safety, transparency, and geopolitical AI competition.






