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negativeSYS.SOURCE: The Hacker News2026-09-11T21:45:29+05:30

Anthropic Identifies Seven China-Based AI Labs Conducting Large-Scale Claude Model Distillation Attacks

Anthropic detected seven China-based AI labs conducting large-scale illicit distillation attacks on its Claude model, exploiting proxy services and stolen credentials to extract proprietary capabilities. The attacks involved unauthorized replication of Claude's reasoning, coding, and data analysis functions through covert data harvesting techniques.

Anthropic on Thursday said it identified and disrupted industrial-scale illicit distillation attacks against Claude from seven labs based in China, including Alibaba, Moonshot, DeepSeek, Z.ai (aka Zhipu), and MiniMax.

Knowledge distillation by itself is a legitimate training method. It refers to a machine learning technique where a large, powerful AI model assumes the role of a "teacher" to

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