Anthropic just went public with something they caught in the act: Alibaba, operating through its Qwen AI lab, ran nearly 29 million fraudulent exchanges against Claude between April and early June.

Here’s what matters. They weren’t just probing. They were systematically extracting the capabilities Claude is most valuable for: software engineering and agentic reasoning. The attack used nearly 25,000 fake accounts, all coordinated. This is distillation at scale.

Anthropic sent a letter to Congress laying out exactly what they want: export controls on frontier model access, mandatory screening for high-volume API patterns, and coordination between labs and government to spot this faster next time.

The stock market heard them. Alibaba’s American depositary receipts dropped over three percent in a single afternoon.

This matters because it puts a price on capability extraction. If a team is willing to run 29 million queries to copy your model, it means your model is worth copying. The economics of distillation just got a lot more visible.

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Sources:
https://www.cnbc.com/2026/06/24/anthropic-alibaba-distillation-campaign.html
https://thenextweb.com/news/anthropic-accuses-alibaba-distillation-claude-qwen
https://cybermagazine.com/news/inside-anthropics-claims-of-distillation-attack-by-alibaba

Repost this. Thanks.