Anthropic, the San Francisco-based artificial intelligence (AI) company, has leveled serious allegations against three Chinese AI firms—DeepSeek, Moonshot, and MiniMax—claiming they have engaged in industrial-scale intellectual property theft. According to the company, the firms executed “distillation” techniques to unlawfully extract capabilities from Anthropic’s Claude chatbot through the misuse of API access.
Distillation often involves extracting via Input and Output iterations to train a new smaller, more precise model.
In a statement, Anthropic revealed that the alleged theft involved the creation of over 24,000 fake accounts leading to more than 16 million fraudulent interactions with Claude. These actions purportedly aimed to siphon off features and capabilities that could enhance the competitors’ AI offerings, raising significant concerns about the integrity of intellectual property rights. However, many publishers would like a word on the principle of IP and content harvesting!
Critics have pointed out the broader implications of such incidents for AI developers and the tech industry at large. While some observers have noted that the Chinese firms paid for API access, others argue that the exploitation of the service terms constitutes a troubling trend in AI development, highlighting vulnerabilities in proprietary technology.
The allegations against DeepSeek, Moonshot, and MiniMax come amid rising tensions in the global AI industry, particularly regarding international standards and regulations. As AI firms continue to innovate and compete, the necessity for clearer frameworks to protect intellectual property remains paramount.
In light of these developments, the discourse around ethical AI use and the accountability of corporations in the technology sector is likely to intensify. The outcome of Anthropic’s claims could set a crucial precedent for future interactions between AI developers and their competitors.

