• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

How three Chinese AI firms ran industrial-scale free ride on Claude

by February 23, 2026
by February 23, 2026
Anthropic alleges Chinese AI firms used fake accounts to distill Claude at scale, raising security concerns.

Anthropic says it has uncovered what amounts to an industrial-scale “free ride” on one of America’s best AI models.

In a new disclosure, the Claude-maker said three prominent Chinese AI firms, namely DeepSeek, Moonshot AI, and MiniMax, used about 24,000 fake accounts to generate more than 16 million interactions with Claude.

The Chinese AI models aimed to copy their capabilities without authorization. It wasn’t described as a hack or a data breach.

Instead, Anthropic framed it as something harder to spot: competitors learning from Claude’s answers at a massive scale.

What “AI distillation” is and how this was done

The technique at the center of Anthropic’s allegation is “distillation,” a common AI training method where a smaller model is trained on the outputs of a more capable one.

Done legitimately, it’s a way to make cheaper, lighter models; done illicitly, it can become a shortcut that transfers performance without paying the original developer or building comparable research pipelines.

Anthropic said the three firms’ activity violated its terms of service and regional access restrictions, and it characterized the campaign as coordinated and “industrial-scale.”

The company said it has “high confidence” these actors were conducting distillation attacks, and that the traffic disproportionately targeted Claude’s more advanced skills, such as reasoning and coding.

Anthropic claimed that the effort produced more than 16 million interactions via roughly 24,000 fake accounts, naming DeepSeek, Moonshot, and MiniMax.

A key enabler, Anthropic said, was the use of proxy services that resell access to frontier models and can mask who is behind the requests.

It described “hydra cluster” architectures: large networks of fraudulent accounts that spread requests across Anthropic’s API and third-party cloud platforms, making takedowns whack-a-mole rather than a clean shutdown.

In one case, a single proxy network managed more than 20,000 fraudulent accounts simultaneously, mixing distillation traffic with unrelated customer activity to make detection harder.​​

Also Read: Citrini’s ‘thought exercise’ on AI sparks selloff in Visa, DoorDash, others

Beyond Anthropic: Broader implications

Anthropic’s warning lands in a uniquely sensitive moment because Claude is not just a consumer chatbot.

The company says the US Department of Defense awarded it a two-year prototype “other transaction agreement” with a $200 million ceiling to build frontier AI capabilities for national security use.

Claude is being integrated into defense workflows on classified networks via partners such as Palantir.

That backdrop is part of why Anthropic frames distillation as more than a commercial issue: it argues illicitly distilled models may not preserve the safeguards US labs build into their systems, creating national security risks.

Anthropic also tied the issue directly to policy.

“The window to act is narrow,” the company wrote, urging faster, coordinated action from industry and policymakers as distillation campaigns grow in “intensity and sophistication.”

It argued that distillation can undermine US export controls by letting foreign labs “close the competitive advantage” that those controls aim to protect.

The post How three Chinese AI firms ran industrial-scale free ride on Claude appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Vanda stock’s explosive rally may be more hype than substance
next post
Citrini’s ‘thought exercise’ on AI sparks selloff in Visa, DoorDash, others

Related Posts

Nvidia stock in the red today: what to...

March 16, 2026

Tesla stock trades in red, but 3 big...

March 16, 2026

Ulta Beauty stock’s post-earnings sell-off is a gift...

March 16, 2026

Is AMD stock’s latest dip a warning sign...

March 16, 2026

Why is BBAI stock tanking to $3.91 on...

March 16, 2026

US stocks close in red as S&P 500...

March 16, 2026

Microsoft eyes massive Texas AI hub as quality...

March 16, 2026

Is AI speeding up war? How US struck...

March 16, 2026

Altaf Kassam: US stocks may not ‘snap-back’ after...

March 16, 2026

S&P 500 and VOO stock: Top catalysts to...

March 16, 2026

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Nvidia stock in the red today: what to expect at GTC

    March 16, 2026
  • Tesla stock trades in red, but 3 big catalysts say buy the dip now

    March 16, 2026
  • Ulta Beauty stock’s post-earnings sell-off is a gift for long-term investors

    March 16, 2026
  • Is AMD stock’s latest dip a warning sign or a buying chance?

    March 16, 2026
  • Why is BBAI stock tanking to $3.91 on huge volume?

    March 16, 2026
  • US stocks close in red as S&P 500 dips on oil rally and geopolitics

    March 16, 2026

Editors’ Picks

  • 1

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 2

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 3

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • ‘The Value of Others’ Isn’t Especially Valuable

    April 17, 2025
  • 6

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (4,442)
  • Editor's Pick (554)
  • Investing (714)
  • Stock (2,800)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Morning brief: Bitcoin gains, Asian stocks rally...

March 10, 2026

Russell 2000 rally: sustainable or ‘January effect’...

January 26, 2026

How SK Hynix leapfrogged Samsung in the...

January 29, 2026