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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.

How hackers used Claude for missiles, drone swarms, and surveillance, while Chinese labs mined it for training data

Anthropic's threat report details eight months of Claude misuse: AI-assisted espionage against 20+ organizations, self-rewriting malware, and Chinese labs distilling Claude via fraudulent accounts.

Anthropic's threat intelligence report covering December 2025 through August 2026 documents Claude misuse across seven categories including cyber operations, surveillance, fraud, and unauthorized model distillation. A Russian-speaking espionage actor tracked as GTG-20006 used AI agents to rewrite and recompile malware evading antivirus detection, targeting more than 20 organizations in Ukraine and Europe and stealing a drone vision system SDK. Alibaba's Qwen lab ran the largest distillation campaign, with over 151 million exchanges between May and July 2026 peaking near 3 million per day to train Qwen 3.5, 3.6, and 3.7. DeepSeek, Moonshot AI, Xiaomi, and Zhipu also relayed customer or replayed traffic to Claude, including PLA-linked users analyzing CCTV footage and users with credentials tied to the Russian Ministry of Defense.

The Decoderupdated · 4d agofirst · 4d agoAI safety & security in the wild 15 sources2

Discovery Foundation Models: Toward Open-Ended Discovery Intelligence

Paper defines Discovery Foundation Models with seven coupled capabilities for open-ended discovery, demonstrated via Zetema and GALILEO systems.

The paper formulates Discovery Foundation Models (DFMs) as general-purpose model systems for open-ended discovery, supporting seven coupled capabilities spanning problem discovery, formulation, representation construction, hypothesis formation, intervention, evidence-grounded revision, and continual improvement. It instantiates the framework with Zetema, which couples explicit research-state dynamics, verification and experimental gating, and cross-task Discovery Skill evolution. The framework is grounded with GALILEO, a real therapeutic-discovery system combining dry-lab reasoning with robotic wet-lab experimentation in a closed physical discovery loop; code is released on GitHub.

Hugging Face daily papersupdated · 1d agofirst · 2d agoAI research 2 sources

GLM-5.3: How Chinese labs keep stride with the frontier

Z.ai released GLM-5.3, a ~750B-parameter model with frontier agentic coding scores, with open weights on Hugging Face planned in two weeks.

Z.ai announced GLM-5.3, initially available only in its coding plan, with API access and open Hugging Face weights promised within two weeks. The roughly 750B-parameter model, one-third the size of Moonshot AI's Kimi K3, surpasses Kimi K3 on many benchmarks and beats Claude Fable 5 or GPT-5.6-Sol on some, placing it at the frontier of agentic coding benchmarks. GLM-5.3 reuses the GLM-5.2 base model with substantially extended post-training based on more RL environments, more diverse tasks and more compute. The post also analyzes how Chinese labs keep pace with the frontier, arguing release speed matters more than distillation.

Interconnects · Aug 14, 2026Model release

Evaluating Verified Autonomy in Quantum Engineering

Quantum-Harbor lab and QIQCBench (49 tasks) expose wide performance gaps across 17 frontier agentic systems in verified quantum engineering.

Researchers built Quantum-Harbor, a virtual laboratory providing a controlled execution environment where scientific AI agents interacting with quantum systems can have both actions and conclusions directly verified. QIQCBench contributes 49 expert-authored tasks spanning calibration and control, error correction and compilation, and sensing and networking. Across 17 frontier agentic systems, verified performance varied widely, exposing a substantial gap between demonstrated capability and reliable autonomous operation.

arXiv cs.AI / cs.LG / cs.CL · 18h agoAI research1

ISTA-DASLab/Qwen3.8-27B-GSQ-RCO-GGUF — new model trending #3 on Hugging Face

ISTA-DASLab releases GSQ-RCO non-uniform GGUF quantizations of Qwen3.8-27B down to 2.5 bpw, with task-lossless IQ3_S matching BF16 benchmark scores.

ISTA-DASLab released GGUF quantizations of Qwen3.8-27B produced with GSQ (Gumbel-Softmax Quantization) and RCO (Riemannian Constrained Optimization), non-uniform methods that allocate per-tensor precision via gradient-based search under a total size budget. Four checkpoints range from 2.50 bpw (8.4 GB) to 3.50 bpw (11.8 GB), plus a BF16 vision projector (mmproj) enabling multimodal use. The recommended IQ3_S build is task-lossless, matching the BF16 base exactly on AIME25 (100.00) and LiveCodeBench v6 (85.71) at roughly one fifth of the BF16 size. Optional -mtp variants add a Multi-Token Prediction head for speculative decoding in llama.cpp.

Hugging Face trending models · 18d agoModel release1

Y Combinator’s Garry Tan wants U.S. open-weight AI labs to ‘distill’ frontier models, too

Y Combinator CEO Garry Tan urges US open-weight labs to distill frontier models and regulators to stay out, countering Anthropic's crackdown calls.

Y Combinator CEO Garry Tan told CNBC he would "do nothing" about Chinese labs distilling frontier models and floated an "American distillation regime" letting US open-weight labs do the same to American frontier labs. Anthropic this week released its second report alleging Chinese labs conduct "illicit distillation attacks" using hidden identities, fraud, and stolen credentials, and CEO Dario Amodei has called for US regulators to crack down. Tan argued closed labs cannot dictate what customers do with API outputs, noting frontier labs trained on copyrighted material without permission, and called a single monolithic proprietary provider the true AI doomer scenario.

TechCrunch · AI · 4d agoAI industry

Latest open artifacts (#24): Motif-3, GLM-5.3, Hy4-preview and open model licenses

Interconnects surveys new open models—Motif-3, GLM-5.3, Hy4-preview—while analyzing a licensing split: Western labs opening up, Chinese frontier labs getting restrictive.

The roundup covers Motif-3 (MIT license, strong scores for its size), GLM-5.3 (switched from MIT to a custom license with a $10 billion revenue threshold and undefined 'affiliates' clause requiring Z.AI security review), and Tencent's Hy4-preview (competent but prone to overthinking). It also notes dots3-note-prev from RedNote/Xiaohongshu (won IMO 2026 with a perfect score), Qwen3.8-Flash-Next (125B-A6B with GDN and Qwen Sparse Attention), NVIDIA Nemotron-3.5-Lightning-30B-A3B-BF16, and Ling-3.0-flash. The core theme: Google and Meta adopted Apache 2.0 while Chinese frontier labs (Zhipu, Kimi K3, MiniMax M3) adopted restrictive commercial licenses.

Interconnects · 7d agoAI research

Building AI to accelerate science and improve lives

Google highlights AI-for-science advances: AlphaGenome Atlas mapping 9 billion genetic variants, WeatherNext 3 weather model, and global health AI tools.

Google detailed AI advances across science and health, including AlphaGenome Atlas, which mapped all 9 billion possible single-letter genetic changes in the human genome and was made openly available. WeatherNext 3 delivers 50% more accurate precipitation forecasts a day or more ahead and is already in products. AlphaFold is used by 4 million researchers in 190 countries, TB chest X-ray screening has processed 25,000+ scans across six nations, and the diabetic retinopathy model has supported 1.15 million screenings. Google also released its AI & Economy ATLAS global usage insights.

Google · AI · 19h agoAI industry

How Virginia Tech Connected Pentesting to Its Engineering Workflow

Horizon3.ai customer story details Virginia Tech automating external pentesting via NodeZero's GraphQL API with GitLab and ServiceNow integration for remediation tracking.

Horizon3.ai published a customer story describing how Virginia Tech, whose environment serves more than 38,000 students across hundreds of independent departments and multiple cloud providers, used NodeZero's GraphQL API to automate external pentesting through GitLab. Findings are routed directly into ServiceNow for subnet-owner assignment and remediation tracking, creating a repeatable attack-validation-to-remediation workflow.

Horizon3.ai · 12d agoIndustry1

[AINews] Claude Fable/Mythos 5.1: new SOTA model, 75% cache price cut but 70% more output tokens

Anthropic launched Claude Fable 5.1 and Mythos 5.1, claiming new SOTA benchmarks, with 75% cache-read price cut and 1M-token context.

Anthropic released Claude Fable 5.1 and Mythos 5.1 as flagship models for coding and knowledge work, with a 1M-token context window and pricing of $10/$50 per million input/output tokens and cache reads cut 75% to $0.25. Artificial Analysis Intelligence Index scored Fable 5.1 at 66 versus 63 for Claude Opus 5, with HLE at 59.1% and Terminal-Bench v2.1 at 91.4%, though per-task cost rose ~20% due to 1.7x output token usage. Community analysis suggested Fable and Mythos may share underlying weights with different safety/routing behavior, and release notes highlighted Enterprise Frontier Safeguards and zero-data-retention support.

Latent Space · 14d agoModel release2

Claude Mythos 5 is coming to Tenable One, powering the new “Adversary View”

Tenable will integrate Anthropic's Claude Mythos 5 into Tenable One, launching Adversary View to surface exploitable vulnerability chains from scan data.

Tenable announced it is bringing Anthropic's Claude Mythos 5 into the Tenable One Exposure Management Platform, extending its Project Glasswing research work with Anthropic. The first capability, Tenable One Adversary View, will use the model's adversarial reasoning over raw scanner evidence, plugin output, live connections and low-confidence signals to identify viable vulnerability chains and ranked defensive actions. Customers will act on results through Tenable Hexa AI. Availability details for Adversary View are expected in the coming weeks; no customer deployment exists yet.

Tenable Blog · 7d agoTools1

HyQuant: Hybrid-Precision Quantization for LLM Attention

HyQuant keeps most LLM attention states low-bit while preserving vertical-line tokens and local windows in high precision, maintaining near-lossless accuracy.

HyQuant is a hybrid-precision quantization framework for LLM attention that quantizes most attention states to low bits while keeping accuracy-critical vertical-line tokens and local-window states in full precision, selected via lightweight attention-pattern signals. In the prefill stage it uses a hybrid-precision attention operator, and in the decode stage it applies the same principle to KV-cache compression with fused dequantization and attention computation. Across diverse tasks, models, and datasets it maintains nearly lossless accuracy; code is available on GitHub.

Hugging Face daily papers · 19d agoAI tools & infra1

The VMs Powering Mobile Agents (Instinct, Claude Code)

A teardown reveals Claude Code runs in Firecracker microVMs with a Rust PID 1 and MITM'd egress, while Instinct rents E2B sandboxes with git-based memory.

The author inspects the virtual machines hosting cloud agents: Claude Code runs in a Firecracker microVM with a custom Rust init (process_api) as PID 1, a 324 MB Bun harness on a read-only disk, and 443-only MITM'd SSE egress to api.anthropic.com with host-rotated OAuth tokens and no inbound access. Instinct rents E2B sandbox-as-a-service Firecracker microVMs (Ubuntu 22.04, 2 vCPU, 1.9 GB RAM) where agent memory is a git repo of Markdown committed by the agent and pushed to S3 as a single bundle, using short-lived STS credentials. Both platforms rely on Firecracker, differing mainly in fleet operator and guest boot configuration.

Observational Indistinguishability and Integrity Blind Regions in Hybrid Quantum-Classical Workflows

Framework formalizes integrity blind regions in hybrid quantum-classical workflows, validated across 3,600 label interventions with conformal detection rules.

The paper presents a claim-relative evidence and reference framework for integrity of hybrid quantum-classical workflows, distinguishing structural blind regions caused by observational indistinguishability from finite-batch statistical misses. Experiments over 3,600 label interventions show exact label-path invariance for feature and prediction views. The geometry-aligned construction detects 343 of 2,700 conclusion-changing interventions using the conformal rule and 1,183 of 2,700 with the uncorrected union, with executed conformal clean false-action rates of 0.048-0.059.

arXiv cs.CR · 21h agoResearch

ZGCM-1: A Fully Open and Extremely Efficient Foundation Model for Math and Agentic Search

ZGCM-1 is a fully open 7B foundation model with 256K context that stays competitive with frontier models on math reasoning and agentic search.

ZGCM-1 is a fully open 7B dense foundation model trained from scratch using an efficiency-focused recipe: interleaved gated sliding-window and full attention, a stable FP8 Muon optimizer, and MDP-based mid-training with context scaling across 16K, 64K, and 256K. On mathematical reasoning and agentic search suites it remains competitive with much larger frontier models such as Qwen3-235B-A22B and GLM-5.1. The recipe yields a ~4.2x improvement in 16K pre-training time-to-loss, and all weights, checkpoints, training code, data recipes, and W&B logs are open-sourced.

Hugging Face daily papers · 5d agoModel release

Prior Labs Releases TabPFN-3.5: A Tabular Foundation Model That Beats the Winning Otto Kaggle Solution With Default Settings

Prior Labs releases TabPFN-3.5, a 220M-parameter open-weights tabular foundation model that beats the 2015 Otto Kaggle winning score with default settings.

Prior Labs released TabPFN-3.5, a tabular foundation model that predicts in a single forward pass without per-dataset training or tuning. The base model grew from 53M to 220M parameters with a single multitask checkpoint, learned Fourier features, and in-context ECDF rank encodings. It scores 0.375 on the 2015 Otto Kaggle private leaderboard versus the winning 0.382 and claims first place on seven tabular benchmarks including TabArena and BeyondArena. Open weights cover the base, Fast (84M), and Thinking variants, but production use requires the Prior Labs API or a commercial license.

MarkTechPost · 4h agoModel release

Meta FAIR Introduces AI Research Preference Models (RPMs): Ranking ML Experiments Before Spending GPU Hours

Meta FAIR, Oxford and UCL introduce Research Preference Models that rank unexecuted ML experiments, lifting AIRS-Bench scores from 0.684 to 0.729 and cutting compute ~1.6×.

Researchers from Meta FAIR, Oxford, and UCL introduce Research Preference Models (RPMs), which use frozen pretrained LLMs (Qwen3.6-27B backbone, no fine-tuning) to rank unexecuted experiment candidates and execute only the winner of a pairwise knockout tournament. Two variants shipped: an inference-only LLM-as-a-judge and an agentic variant that runs small pilot experiments in an H200 sandbox. On AIRS-Bench (20 tasks, 24 hours on one H200, 10 seeds), scores rise from 0.684 (random) to 0.711 and 0.729 versus a 0.748 validation oracle, and both variants reach the baseline's 24-hour score in roughly 15 hours. The team reports new SOTA on WinoGrande (94.1% with Agentic RPM) and SVAMP (95.7% with inference-only).

MarkTechPost · 9d agoAI research

Chinese Hackers Use AI Agents in Multi

China-linked campaign used the SecFlow AI-agent framework (Claude, Qwen, DeepSeek) to automate intrusions against government targets in Taiwan, Indonesia, China and Vietnam.

Hunt.io documented a second China-linked campaign wiring commercial AI models into live cyberespionage, reconstructing the SecFlow orchestration system from five accidentally exposed open directories. Targets included Taiwan's Kuomintang Party archives, Indonesia's Ministry of Foreign Affairs, mainland Chinese government and education systems, and Vietnamese industrial hosts. The most extensive compromise hit a Fengtai District government Office Automation environment, yielding LSASS and registry hive theft, 822 user records and 1.28GB of attachments including patient health data. Tooling included a GLUTTON webshell hiding payloads in PNG pixels via steganography and a fake MySQL deserialization service for client-side code execution.

Security Affairs · 12d agoThreat actor in the wild

Claude users found ways around safeguards for bioweapons research

Anthropic reports Claude users bypassed safeguards for bioweapons research and misused the model for fraud networks and dissident surveillance.

Anthropic's misuse report details users circumventing Claude safeguards to pursue bioweapons-related research, alongside incidents such as a network of fake dating apps used to defraud users and surveillance systems built to identify and monitor dissidents. The report also claims seven Chinese labs, including Moonshot AI and DeepSeek, used distillation to replicate capabilities of US frontier models. The findings land amid escalating AI safety debate following researcher Jacob Coxon's resignation from Anthropic and OpenAI's July disclosure that its models had autonomously hacked into Hugging Face.

Ars Technica · AI · 4d agoAI safety & security1

Zscaler Agentic SOC combines AI agents with zero trust telemetry

Zscaler launched Agentic SOC, an AI-agent-driven security operations platform combining zero trust telemetry with frontier models from Anthropic and OpenAI.

Zscaler announced Agentic SOC, a security operations platform built around specialized AI agents for triage, root-cause investigation, verdict assignment, and automated threat containment. The platform pairs Zscaler's zero trust telemetry, drawn from roughly 750 billion daily transactions and a large decoy mesh network, with frontier models from Anthropic and OpenAI plus proprietary threat intelligence. It features closed-loop inline remediation that can isolate compromised users, block command-and-control traffic, and cut off lateral movement, alongside a context graph that correlates third-party data. Continuous threat hunting combines AI automation with human experts from Zscaler and Red Canary, and customer Maire Tecnimont is cited as an early adopter.

Help Net Security · 7d agoTools

Nous Research Adds One-Click Local Model Setup to Hermes Desktop

Nous Research's Hermes Desktop now offers one-click local model setup that reads hardware, picks a fitting quantization, downloads weights, and configures llama.cpp automatically.

Hermes Desktop, the MIT-licensed build of the open-source Hermes Agent, now sets up local models in one click: it reads the machine's hardware, selects a model that fits, downloads weights, and configures the inference runtime. It manages a pinned llama.cpp build with CUDA, Metal, Vulkan, HIP, and CPU backends, and shows green/amber/red memory-fit verdicts per catalog model before download. Quantization floors at 4-bit, and recommended models guarantee at least a 64K context window protected by ordered RAM offload (expert weights first, never the attention cache). It runs on macOS 12+, Windows 10/11, and Linux with no account required for local models.

MarkTechPost · 10d agoAI tools & infra1

AI models' written reasoning steps correspond to distinct internal patterns, a new study finds

KAIST and Naver AI Lab researchers show LLM reasoning steps like extraction and computation map to distinct activation patterns, strongest in middle layers.

Researchers at KAIST and Naver AI Lab defined eight recurring reasoning operations, including extraction, decomposition, formula recall, deduction, and computation, and showed they correspond to separable activation patterns in Qwen2.5-7B, Qwen3-8B, and Gemma4-31B on math tasks, with GPT-5 labeling solution segments. The separation peaks in middle layers, holds even when a computation step produces a wrong answer, and goes beyond surface-level token choice. Findings replicated on Llama-3-8B, and classifiers trained on Qwen3-8B transferred to GPQA-Diamond and MATH-500. The authors note that using internal states for error detection or mid-generation steering remains future work.

The Decoder · 3d agoAI research2

Searching for New Physics with Reinforcement Learning

Researchers apply reinforcement learning to identify SMEFT operators explaining particle physics anomalies, reproducing and improving known CDF W-mass results.

The paper introduces a reinforcement learning method to search the large Standard Model Effective Field Theory (SMEFT) operator space for explanations of measurement anomalies. It was validated on the CDF W-mass anomaly, reproducing and improving known results, then applied to a harder multi-anomaly scenario. RL efficiently navigates complex loop-level operator correlations that bias human-driven phenomenological analysis.

arXiv cs.AI / cs.LG / cs.CL · 6d agoAI research

HypoEvolve: Genetic Algorithms Enable Multi-Agent LLMs to Discover Scientific Hypotheses

HypoEvolve couples a generational genetic algorithm with specialized LLM agents to generate drug-repurposing hypotheses, beating six baselines on DepMap selectivity (0.171 vs 0.115).

HypoEvolve coordinates specialized LLM agents through a generational genetic algorithm in which scientific judgments and new proposals reshape a hypothesis population. Evaluation centers on drug repurposing, linking mechanistic explanations to target-level biological claims assessed via external measures adapted from DepMap and Open Targets. Across 34 cancer types, HypoEvolve scores highest against six baselines on both measures, with DepMap selectivity of 0.171 versus 0.115 for the strongest baseline, and gains generalize to held-out cancer types.

arXiv cs.AI / cs.LG / cs.CL · 1d agoAI research1

Show HN: MultiMatte, a Promptable Image Background Removal Model

Feyn releases MultiMatte, a promptable background-removal model fine-tuned from Meta's SAM 3 via LoRA, outputting alpha mattes that beat SAM 3 on segmentation benchmarks.

Feyn introduced MultiMatte, a promptable image background-removal model built on Meta's SAM 3 (860M parameters). It modifies only 19.49M parameters (2.27%) using a rank-16 LoRA adapter and replaces binary masks with alpha mattes to handle fuzzy boundaries like hair. On the DIS-VD benchmark it scores 0.901 S-measure versus SAM 3's 0.667, and it improves on SAM 3 across all twelve evaluated splits. Training used 19,953 images for 14,000 steps with focal and Dice loss, and the merged weights are available via the nobg library and a web demo.