Anthropic Accuses Alibaba of AI Distillation Attack

Anthropic accused Chinese technology giant Alibaba of running the largest known 'distillation attack' in a letter to the White House, alleging the company used fake accounts to illicitly extract data from its Claude AI model.

The accusation escalates already heightened US-China technology tensions and sent Alibaba's shares tumbling to a 16-month low.

The allegation comes amid broader concerns about Chinese intellectual property theft in artificial intelligence.

Separately, US intelligence agencies reportedly lost access to an Anthropic AI tool amid a national security dispute.