What happened
US AI company Anthropic has accused Chinese AI developers of extracting data from American models without authorization. According to the company's September report, DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI pulled billions of tokens across millions of requests from models including Claude, GPT, Gemini and Grok over two years.
What is distillation?
Distillation is a technique in which the outputs of a more advanced model are used to train another system. Anthropic acknowledges it is a legitimate training method, but defines "illicit distillation" as an industrial-scale, covert campaign to replicate a model's capabilities without authorization.
The most specific allegation
The sharpest claim targets Moonshot AI, the developer of the Kimi chatbot. The report alleges that Moonshot secretly forwarded requests to Claude while users believed they were using Kimi, citing 300,000 customer requests over a ten-day period and a proxy network of 5,380 fraudulent accounts in Singapore and Japan. Alibaba is said to have carried out more than 151 million distillation activities between May and July 2026.



