By Gloria Ogbonna
Artificial intelligence company Anthropic has accused Chinese technology giant Alibaba of orchestrating what it describes as the largest known attempt to extract its AI capabilities through a large-scale “distillation” campaign, according to a letter the company sent to the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
The letter, dated June 10 and obtained by CNBC, was addressed to committee chairman Sen. Tim Scott (R-S.C.) and ranking member Sen. Elizabeth Warren (D-Mass.). In it, Anthropic alleged that operators linked to Alibaba and its AI research division carried out an extensive effort to access and replicate the company’s advanced AI models through fraudulent means.
According to Anthropic, the campaign involved approximately 28.8 million interactions with its AI systems using nearly 25,000 fake or fraudulent accounts between April 22 and June 5. The company characterized the operation as the largest distillation attack it has identified to date.
Distillation is a machine learning technique in which developers use the outputs of a more advanced AI model to train a smaller or less capable model. While distillation itself is a legitimate AI development method when properly authorized, Anthropic alleges that the activity in this case violated its policies and involved unauthorized attempts to reproduce the capabilities of its proprietary AI systems.
“We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the Administration to maintain American AI leadership,” an Anthropic spokesperson said in a statement.
Alibaba did not immediately respond to CNBC’s request for comment regarding the allegations.
The accusations come as concerns continue to grow over the protection of advanced AI technology and the increasing competition between the United States and China to dominate the rapidly evolving artificial intelligence sector.
This is not the first time Anthropic has reported large-scale attempts to extract its AI technology. Earlier this year, the company disclosed that it had identified three other industrial-scale distillation campaigns allegedly linked to Chinese AI laboratories, including DeepSeek, Moonshot, and MiniMax. In a February blog post, Anthropic said such operations were becoming increasingly sophisticated and urged greater collaboration among AI companies, cloud service providers, and policymakers to strengthen security against unauthorized model extraction.
The latest allegations also emerge amid broader geopolitical tensions involving Alibaba. Breitbart News recently reported that the company is suing the U.S. Department of Defense after being added to the Pentagon’s list of companies it identifies as “Chinese military companies.”
The list, commonly known as the “1260H List,” was established under U.S. law to identify firms that the Defense Department believes support or work closely with China’s People’s Liberation Army (PLA). The Pentagon expanded the list on June 8, adding several major Chinese corporations, including Alibaba.
Alibaba has challenged the designation in court, arguing that the listing is unjustified. Following the Pentagon’s announcement, the Chinese Embassy in Washington criticized the decision, calling on the United States to end what it described as unfair treatment of Chinese companies and to provide a fair and non-discriminatory business environment.
The allegations against Alibaba underscore the growing national security concerns surrounding artificial intelligence, intellectual property protection, and technological competition between the world’s two largest economies. As AI becomes increasingly important to economic growth, military capabilities, and global competitiveness, U.S. lawmakers and technology companies are placing greater emphasis on safeguarding advanced AI models from unauthorized access and potential misuse.
At this stage, Anthropic’s allegations have not been independently proven in court, and Alibaba has not publicly addressed the specific claims outlined in the Senate letter. The matter is likely to draw additional scrutiny from lawmakers and regulators as Washington continues to examine the security implications of artificial intelligence development and international technology competition.
Source Breitbart
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