Anthropic Says Alibaba Illegally Extracted its AI Capabilities

U.S. tech giant Anthropic has made shocking accusations against Alibaba, a Chinese technology and e-commerce company, of “illicitly” and “brazenly” extracting AI capabilities from Claude, Anthropic’s flagship AI model. The accusations were contained in a letter that the firm sent to Congress.

According to the letter addressed to Senator Elizabeth Warren and Senator Tim Scott, operators conducted a “distillation” campaign using fraudulent accounts. Using those accounts, Anthropic alleges, the operators conducted 29 million interactions with its AI chatbot in order to extract its capabilities.

The American tech firm asked Congress to punish the firms that orchestrated those attacks and to institute mechanisms through which American technology could be protected from being stolen.

The letter, dated June 10, says the operators seek to “distill” superior AI models by requesting the model to answer sophisticated questions so that the answers it provides are leveraged in training a model that is weaker than the one whose answers were extracted. The attacks in question included queries designed to get insights into how Claude makes its decisions.

Anthropic says such large-scale attacks are frequently used by firms in China in order to repackage the harvested American AI capabilities as Chinese-made technology.

In the letter, the U.S. firm cited other attacks that it said pose a threat to the American military. Anthropic mentioned the Defense Department’s claim that BYD, Baidu, Alibaba and other technology firms in China were linked to the Chinese military establishment. Distillation attacks, Anthropic added, turn the huge R&D investment of American firms into a cheaper way for rivals to gain an advantage over America.

While the mentioned firms have distanced themselves from the accusations levied against them by the U.S. DoD, Alibaba has gone as far as filing a lawsuit against the U.S. in a bid to be removed from the blacklist of the Pentagon.

Several American tech companies have levied accusations against Chinese competitors, saying they orchestrated distillation attacks so that those rivals could develop similar or even superior AI models at a much lower cost than the budgets used by U.S. firms while developing their models.

Anthropic’s accusations come at a time when the firm, together with OpenAI, are preparing to go public in what is expected to make these tech giants some of the most valuable firms on the globe by market cap.

As the AI race between American companies and their Chinese rivals reaches fever pitch, U.S. firms like Nvidia, SpaceX, Broadcom Inc. (NASDAQ: AVGO) and other tech companies are seeing their shares soaring to record-setting prices.

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