Chinese AI labs secretly used millions of Claude exchanges to train their models, Anthropic says

Anthropic discovered that Chinese AI companies including Alibaba, Moonshot, and DeepSeek were secretly using millions of Claude outputs to train their own models through illicit distillation (copying a more capable AI model's responses to train a cheaper model without permission). Alibaba conducted the largest campaign with over 151 million exchanges, while Moonshot rerouted customer requests to Claude without user knowledge and used the responses as training data. The practices likely violated privacy laws and terms of service, and some exchanges contained sensitive information from individual users and companies.