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

Anthropic disrupted industrial-scale unauthorized Claude distillation by seven China-based AI labs, including Alibaba, DeepSeek, Moonshot, and Z.ai.

Anthropic identified and disrupted six illicit distillation campaigns since February 2026 run by seven China-based labs: Alibaba, Moonshot, DeepSeek, Z.ai (Zhipu), MiniMax, Xiaomi, and SenseTime. The largest, GTG-16005, involved 151 million exchanges targeting Claude Opus 4.6/4.7 chain-of-thought transcripts, peaking at roughly 3 million exchanges per day from more than 3,500 fraudulent accounts. Labs used proxy/relay services with fictitious identities, fake or stolen credit cards, harvested API keys, and purchased conversation transcripts from third-party resellers. Anthropic is countering by banning reseller accounts, summarizing internal reasoning before responding, and introducing preserved thinking in Fable 5.1, which encrypts reasoning and prevents context edits before it.

DeepSeek AI Released DeepSeek-V4.1-Flash with 1M Context, FP4 KV Cache, and Cross-Layer Attention Reuse

DeepSeek released open-weight V4.1-Flash, a 552B MoE model with 1M context and FP4 KV cache, beating Opus-5 and GPT-5.6 Sol on agent benchmarks.

DeepSeek-V4.1-Flash is a multimodal Mixture-of-Experts model with a 552B-parameter backbone plus 196B Engram parameters, activating 8B parameters at prefill and 16B at decode, with a 1M-token context window. It introduces a causal encoder-decoder design, Compressed Sparse Attention 2, and FP4 (E2M1) KV cache quantization, cutting global KV cache to 890 bytes per token, about 1/4 of V4-Flash and 437x smaller than V1. Pre-training covered 45T multimodal tokens; the MIT-licensed weights ship on Hugging Face with vLLM and SGLang support. It scores 90.6 on Terminal-Bench 2.1 and 74.2 on DeepSWE v1.1, ahead of Opus-5 and GPT-5.6 Sol.

MarkTechPostupdated · 4d agofirst · 6d agoModel release 7 sources1