Anthropic Says Seven China-Based AI Labs Ran Industrial-Scale Claude Distillation Attacks

In its September 2026 threat intelligence report, published on September 10, Anthropic accuses seven China-based AI labs of running industrial-scale “illicit distillation” campaigns against its Claude models. Alibaba, Moonshot AI, DeepSeek, Zhipu, Xiaomi, SenseTime and MiniMax are named. The Alibaba case alone exceeds 151 million exchanges between May and July 2026. Beyond the rivalry between AI vendors, this matters directly to enterprises: stolen API keys, opaque proxy services and customer requests relayed without their knowledge are all part of the playbook.

Key takeaways
  • Seven Chinese labs are named; five come with a minimum exchange count, two are described without figures.
  • The attackers sought to extract Claude’s reasoning to turn it into training data, using thousands of fraudulent accounts.
  • Access relied on reseller proxies, fake identities, stolen payment cards and stolen API keys, including keys belonging to legitimate businesses.
  • Moonshot AI, DeepSeek and Xiaomi allegedly relayed their own users’ real requests to Claude without those users knowing.
  • Anthropic responds with layered defenses: organization-level attribution, extraction classifiers, summarized reasoning and identity verification.
SourceAnthropic — September 2026 report
PublishedSeptember 10, 2026
Period coveredDecember 2025 – August 2026
ScaleOver 151M exchanges in the Alibaba case alone

What Anthropic disclosed

The report, “Detecting and countering misuse of AI: September 2026”, covers all misuse disrupted between December 2025 and August 2026. Its final section is dedicated to illicit distillation, which Anthropic describes as an industrial-scale, covert campaign to extract a model’s capabilities without authorization, typically enabled by fraudulent accounts. The company stresses that distillation itself is a common training technique: what is at stake is its unauthorized use at scale. Attributions are presented with high confidence.

LabPeriodExchanges (minimum)AccountsSpecifics
Alibaba (Qwen)May–July 2026Over 151 millionOver 3,500 at peakNearly 3 million exchanges per day at peak; targeted Opus 4.6 and 4.7
Moonshot AI (Kimi)May–July 2026Over 23 million5,380 in one ten-day operationAlmost 300,000 customer requests relayed to Claude
DeepSeek14 days in July 2026Over 12.1 millionNot disclosedRequests from coding-tool users relayed to Opus
Zhipu (Z.ai)17 days, June–July 2026Over 3.4 million273Used Claude to “clean” captured reasoning traces
Xiaomi20 days, March–April 2026Over 400,000Over 1,500Replayed sessions from users of its own models through Claude
SenseTimeNot disclosedNo countNot disclosedBought Claude transcripts from data vendors
MiniMaxNot disclosedNo countNot disclosedRan a proxy service through a shell company offering only Anthropic and OpenAI models

Anthropic describes the Alibaba-attributed campaign as the largest distillation attack it has ever measured. In February 2026, the company had already named DeepSeek, Moonshot AI and MiniMax, citing more than 16 million exchanges through roughly 24,000 fraudulent accounts.

How the techniques worked

Extracting reasoning, not just answers

The main target was the model’s reasoning, which is especially valuable for training a competitor. Alibaba injected a fixed prompt forcing Claude to write its reasoning inside inline tags, which were then converted into supervised fine-tuning data. Other attempts asked the model not to flag the request, framed it as a debugging session, impersonated the operator with fake system prompts, or asked Claude to “translate” its earlier reasoning. One lab tested more than 12,000 requests, each using a different technique, before scaling up the ones that worked.

Cross-session signature replay

Moonshot AI and DeepSeek saved the encrypted “thinking signature” returned by Claude, opened a new session and got the model to turn that signature back into the full reasoning trace. Anthropic says it is developing new defenses against this kind of replay, without detailing how they work.

Users relayed without their knowledge

The most sensitive point for enterprises: some platforms forwarded their customers’ real requests to Claude, then displayed the answers as if they came from their own model. Kimi users believed they were talking to Kimi. DeepSeek identified users of third-party coding tools through string matching and relayed a selection of their requests. Xiaomi replayed saved sessions from users of its MiMo models.

An ecosystem of proxies and resellers

Because Claude is not sold in China, access relied on proxy services (“transfer stations”) fed by fake identities, stolen or fake payment cards and stolen API keys, including keys belonging to legitimate businesses. Some of these networks resold harvested exchanges to other labs, and the same infrastructure served several organizations.

Caveats. All figures are minimums measured over windows of different lengths; the report does not publish a grand total, and the roughly 190 million figure quoted by some outlets is a sum computed by third parties. The report does not show, model by model, that the harvested data was used in released models. At the time of publication, none of the named companies had responded publicly. It is also unknown whether organizations whose keys were stolen have been notified.

Why it matters for your organization

This case goes beyond AI vendors’ intellectual property. Three risks directly concern enterprises:

  • Your AI API keys are valuable: they are stolen and resold to feed these networks. A key exposed in a code repository or on a compromised workstation can generate significant costs and create liability for your organization.
  • Your data may flow through an unexpected model: a third-party service may relay your requests to another provider without transparency, raising immediate confidentiality, data residency and compliance questions.
  • Distilled models do not necessarily inherit safeguards: a model trained on extracted outputs may reproduce capabilities without the associated protections, which calls into question the use of models with poorly documented provenance.

MITRE ATLAS and ATT&CK mapping

The report does not map the activity to these frameworks. The table below is an indicative Defensy reading; MITRE ATLAS, dedicated to attacks on AI systems, is more relevant here than ATT&CK.

TechniqueObserved behavior
AML.T0040 — ML Model Inference API AccessMassive querying of the Claude API through thousands of accounts
AML.T0024.002 — Extract ML ModelHarvesting answers and reasoning to train a competing model
AML.T0054 — LLM JailbreakFake system prompts and phrasing designed to bypass safeguards
T1078 — Valid AccountsUse of API keys stolen from legitimate businesses
T1090 — ProxyAccess through reseller proxy services to hide the origin

Recommendations

  1. ImmediateInventory and protect your AI API keys

    List the AI provider keys used across the organization, store them in a secrets vault, scan your code repositories for them, and revoke any exposed or unused key.

  2. ImmediateMonitor API consumption

    Set alerts on volumes, daily spikes and unusual origins. A sudden jump in consumption can signal a stolen and resold key.

  3. Short termCheck your AI supply chain

    Require vendors and third-party tools to disclose which models they actually use, where processing takes place and which subcontractors are involved. Rule out opaque intermediaries.

  4. Short termControl data sent to AI services

    Classify which data may leave the organization and enforce DLP rules on flows to generative AI platforms.

  5. Medium termAssess the provenance of adopted models

    Before integrating a third-party or open-weight model, document its origin, known training conditions and safeguards as part of your AI governance.

Defensy’s view

These campaigns show that AI has become a strategic asset, and that its access and data are stolen and resold like any other asset. API keys, data flows and vendor choices are now part of security governance.

Our Secure AI Adoption offering helps you govern your usage, vendors and models, while Data Protection & Governance secures the information you entrust to these services.