
How Seven Chinese AI Labs Stole 190+ Million Claude Conversations in Massive Distillation Attack
In September 2026, Anthropic disclosed that seven China-based AI laboratories, including Alibaba, Moonshot, DeepSeek, and others, conducted industrial-scale illicit distillation attacks against Claude AI models between February and July 2026. The attackers used networks of fake accounts created with stolen credit cards and API keys to extract over 190 million conversation exchanges, routing requests through proxy services to harvest Claude's capabilities including chain-of-thought reasoning, coding abilities, and logical reasoning functions for unauthorized training of competing models. This incident highlights the emerging threat landscape of AI model theft and intellectual property extraction, representing a new category of cybercrime where nation-state affiliated entities systematically steal proprietary AI capabilities to advance their own technological development and competitive positioning.
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