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Anthropic says Alibaba illicitly extracted Claude AI model capabilities

reuters.com

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Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#161
post #51

Does anyone have hints on what kinds of prompts are most used for a distillation like this—SWE-Bench sorts of things? Is reconstructing the compressed knowledge in the model like reconstructing a lossy JPG or MP3 a reasonable analogy?

There are some Claude datasets (of indeterminate provenance) floating around on huggingface you can look at (or at least used to be, they might've been taken down).

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#162

A partly insider on this. I think Anthropic is just marketing / bluffing, because they don't even have the data. They do distill the models, but they don't go to Anthropic, they just use platforms like aws bedrock, there are too many restrictions on Anthropic's own platform.

>they just use platforms like aws bedrock, there are too many restrictions on Anthropic's own platform

This is actually the only way that what Anthropic is alleging would make any kind of sense. And, as a matter of fact, is exactly what every enterprise does to train models.

This kerfuffle should be interesting to watch.

But, as always, everyone (in the US) should fully download all the Chinese models while you can. I suspect this may be the "Phantom Menace" they use to render illegal our use of Chinese AI tech just as they've rendered illegal our use of Chinese cars. Only difference is, we peasants may need the Chinese AI tech to have any chance of competing with Big Tech in the future.

And even with the Chinese tech, as Big Tech spreads their AI out into more and more niche areas, we'll likely still not be able to build startups that can compete with them.

It's just that without Chinese AI tech, we'll have no chance at all.

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#163

Here's what is happening: Chinese resellers are offering Claude tokens at 70-90% below official Anthropic API prices. They achieve this by reselling capacity from pooled Claude Max accounts, payments fraud, and also reselling the model output & reasoning chains to various Chinese labs. They are subsidizing model access in exchange for user logs and reasoning traces, which they then sell as training data, allowing the…

>>Chinese resellers are offering Claude tokens at 70-90% below official Anthropic API prices. Can someone with more understanding dumb it down for me please. Does this mean that the reseller (for example XYZ) is buying it from Anthropic at Anthropic's price and then reselling it at a cheaper price???? why would XYZ offer this at a loss like that when they could just offer it at Anthropic's price??? The link does ment…

People have estimated that a $200 Claude Max 20x subscription gets you ~$2800 worth of tokens every month if you use it continuously. So if you can find a way to resell the tokens you can offer a 90% discount and still make a profit.

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#164
post #123

This is great for competition! Chinese vendors offering a cheaper solution = what economics told me the free market was all about. I also learnt that Anthropic should get better at what they do if they want to compete. If not, somebody else will win. Or does this not apply to huge US corporations any more?

It never did. In debt the first 5000 years Geaeber makes the case that pure “free market” trade has never really existed in “the west”. The closest to this ideal that’s ever happened was during the Islamic golden age enabled by religious prescriptions against usury.

>religious prescriptions against usury.

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#165

Here's what is happening: Chinese resellers are offering Claude tokens at 70-90% below official Anthropic API prices. They achieve this by reselling capacity from pooled Claude Max accounts, payments fraud, and also reselling the model output & reasoning chains to various Chinese labs. They are subsidizing model access in exchange for user logs and reasoning traces, which they then sell as training data, allowing the…

Im ok with this! Is there a site that list all these resellers, or better, a openrouter-like for these resellers?

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#166

Here's what is happening: Chinese resellers are offering Claude tokens at 70-90% below official Anthropic API prices. They achieve this by reselling capacity from pooled Claude Max accounts, payments fraud, and also reselling the model output & reasoning chains to various Chinese labs. They are subsidizing model access in exchange for user logs and reasoning traces, which they then sell as training data, allowing the…

Identity verification won't work. Nothing will. They are paying (and will continue to pay) US citizens sitting at home to copy-paste / type prompts out if they have to. But eventually they won't have to.

Once there are enough spam PRs on github / uploads of claude conversations, enough mythos output used in production etc.; it'll just be the same albeit delayed. Doesn't matter either way.

I feel for Anthropic's team and I understand where they're coming from, but once you reason it out, you'll come to the conclusion that this war is an exercise in futility.

Unlike prior systems - like Google's algorithm; these models aren't entities that use math in the process of doing X or Y (information retrieval from such and such infrastructure) -- they are the math. More precisely they're mathematical functions. Very very complex functions. Almost certainly impossible to write out without filling up a library functions. But they're mathematical functions nonetheless.

So when your text is processed, then Mythos / Opus etc at their core compute the result of the Mythos / Opus function,

   f(text) -> (text_transform)
where f is a continuous function, https://www.turing.ac.uk/sites/default/files/2025-11/languag...

According to the Stone-Weirstrass theorem (edit, it's Stone-Weierstrass with an e.), with enough data points and mathematical sophistication, anyone can approximate the shape of this function.

Of course, the more data we get, the better our approximation becomes, but the beauty of it is that all we fundamentally need are the input and output and eventually we'll create a good enough approximation of the f that's Mythos. Which is the entire product.

I bounce ideas off of Opus these days (Fable for the brief time it was available) and it pointed out that this is arguably the same as Google search, but I disagree with it because Google search is a process;

Google search differs because the algorithm is one step of a multi-step process that is continuously occuring. Google crawls pages. Google stores and indexes what it finds. Google then exposes this to retrieval via its algorithm. User uses algorithm.

Google isn't a mathematical function. It used to be a process. (RIP Google 1998-2019, you will be missed and remembered)

You cannot arrive at the results of those operations via simple observation; not unless you index Google by making another Google.

You can however, do so for these models. It is a very costly process, but there are many paths up the mountain. Many ways for this to be ultimately pointless. As many ways as there are bored mathematicians.

It's better in the long run for Anthropic et al to make friends / not give people a reason to sneak in (a la piracy -- another attempt to control information) than it is to try and shut people out.

And no, it's not going to be pandemonium because if everyone has access to Mythos then no one has access to "Mythos."

Why wouldn't you first run this model to fix the obvious bugs it could find on your codebase? The power of a Mythos goes away if you can do the amazing "jail break" of "Claude, fix all the bugs please."

Just saying.

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#167
post #150
post #123

Earlier quoted context omitted.

It never did. In debt the first 5000 years Geaeber makes the case that pure “free market” trade has never really existed in “the west”. The closest to this ideal that’s ever happened was during the Islamic golden age enabled by religious prescriptions against usury.

>The closest to this ideal that’s ever happened was during the Islamic golden age enabled by religious prescriptions against usury. How does are bans against consensual financial exchanges close to the "ideal" of the free market? It just sounds like you have an axe to grind about the financial system rather than describing free markets.

Usury and debt based economy creates a dynamic where being competitive in production is secondary to financialistion.

In short, instead of market being driven by demand and productivity, it is driven by financier curving out monopolies.

Peak Examples are Uber and AirBnB.

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#169
post #93

Here's what is happening: Chinese resellers are offering Claude tokens at 70-90% below official Anthropic API prices. They achieve this by reselling capacity from pooled Claude Max accounts, payments fraud, and also reselling the model output & reasoning chains to various Chinese labs. They are subsidizing model access in exchange for user logs and reasoning traces, which they then sell as training data, allowing the…

Wait, so is your theory mutually exclusive to Anthropic's claims of "theft of capabilities"?

Not really. I think Anthropic focuses on identifiable distillation attacks rather than the (even larger) industrial-scale token harvesting and reselling operation, because they don’t want people to know how easy it is to get cheap Claude tokens.

Once people realize they can access Anthropic models at a 90% discount, they won’t want to pay full API prices anymore.

Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities

#170
post #123

Earlier quoted context omitted.

It never did. In debt the first 5000 years Geaeber makes the case that pure “free market” trade has never really existed in “the west”. The closest to this ideal that’s ever happened was during the Islamic golden age enabled by religious prescriptions against usury.

Without interest why would anyone loan money? Even the Islamic banking alternatives all just hide the interest charges.

Shares and Goodwill. You loan money for good well or share of an enterprise which comes with benefits and risks.
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