I'm looking forward to the trial where Anthropic will have to disclose sources of their training data, and then explain why they are entitled to charging customers for using regurgitated training data but Alibaba which trains their models on Anthropic's models are not. Should be fun. Edit: clarification
They already did and paid 1.5B https://authorsguild.org/advocacy/artificial-intelligence/wh...
Anthropic says Alibaba illicitly extracted Claude AI model capabilities
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Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#722Distillation is fundamentally impossible to protect against. All you can do is slow them down. Change my view. Eventually these Chinese companies will release some extension like Honey, which will sit on top real, non-Chinese clients and send everything to China anyway. It's over.
So there's that.
Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#723This 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?
China aren't offering a cheaper solution. They are subsidizing an existing one (which is already subsidized) in order to gain foothold. The difference is that in the US subsidies come from VC, while OP implies subsidies come from the AI labs that buy the training data (which may as well also be VC backed, so just one extra hop). This isn't "the market working as intended", this is an exhaustion fight to the bottom wh…
Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#724Here'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…
Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#725Earlier quoted context omitted.
https://research.nvidia.com/labs/lpr/slm-agents/ - Distillation data is a natural byproduct of using these models. There's no effective defence against it. Anthropic is degrading thinking blocks to summaries to slow it down and hide model internals, but in the end, the math says you're SOL and it works on MNC/Large Corporate scale well enough that the moment cost becomes a priority, you're left without the lock in yo…
Byproduct? It’s essentially the only part of an LLM that is useful, because it’s the WHOLE product! It’s the same reason why DRM for audio and video is a non sequitur - if you want a person to see or hear audio or video, eventually at the end of the chain, it’s going to be converted to audio for the ear and light for the eyes - that’s why you attach your tap. Without a model generating tokens, what’s the point. So if…
Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#726Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#727Reminds me a bit of the anecdote of Steve Jobs complaining about people ripping off the Mac GUI, in the mid to late 1980s, when he gave no public acknowledgement to the work done by Xerox on the Alto and Star operating system. "you're trying to rip off what I've already ripped off!" Crawl the whole Internet to build a gargantuan sized LLM and then complain you're being copied...
https://www.authorsalliance.org/2025/09/07/the-anthropic-set...
"One rule for thee, a different rule for me." - Dario
Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#728Here'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…
Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#729Re: Anthropic says Alibaba illicitly extracted Claude AI model capabilities
#730I'll play the world's smallest violin for Dario