Anthropic's head of threat intelligence, Jacob Klein, has accused foreign adversaries, specifically Chinese AI labs, of illegally accessing and distilling its Claude models. Distillation involves using the output of one AI model to train another, which can significantly reduce development costs for the new model. Klein states that this is not legal competition but rather theft, with an "illicit ecosystem" working to evade Anthropic's controls and create accounts at scale.
This issue is emerging at a critical time for Anthropic, a company valued at nearly $1 trillion and expected to go public soon. The alleged illegal distillation allows competitors to offer similar AI capabilities at a much lower price, potentially impacting Anthropic's market position. The practice has become a controversial topic in the AI landscape, with some advocating for regulation against intellectual property theft and others arguing for an open market.
Anthropic has specifically named Chinese AI labs Moonshot AI, DeepSeek, MiniMax, and Alibaba as engaging in these distillation practices. Moonshot AI's Kimi K3 model, which gained attention for its lower price and adaptability, is alleged by Klein to have been illegally trained using the newest version of Claude. Anthropic has also accused Alibaba of a "massive distillation attack" to capture capabilities from its frontier AI models.
The U.S. government has also expressed concerns regarding this issue. An April memo from the Trump administration stated that distillation undermining American research and proprietary information is "unacceptable" and indicated that measures would be explored to hold foreign actors accountable. This highlights a broader industry concern about intellectual property protection in the rapidly evolving AI sector.
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Anthropic's head of threat intelligence, Jacob Klein, stated that foreign adversaries, particularly Chinese AI labs, are illegally accessing and distilling its Claude models to train competing AI technology and sell cheaper copycat versions. This practice, which Anthropic considers theft of intellectual property, is intensifying as the company approaches a potential IPO and has prompted concerns from the U.S. government regarding undermined American research.