distillation2 articles
White House Points Finger at China's Moonshot AI Over Alleged Anthropic Model Theft
A senior White House official, Michael Kratsios, has accused China's Moonshot AI of using large-scale distillation of Anthropic's models to develop its impressive Kimi K3 AI, rather than genuine innovation. US officials, including Treasury Secretary Scott Bessent, have warned that such covert IP theft could result in sanctions and Entity List designations. China has not responded to the allegations, and Beijing typically denies such accusations.
Anthropic quietly buried hidden tracking code in Claude Code. Now it's removing it.
Anthropic has announced it will remove hidden steganographic code from its Claude Code tool, which was secretly embedded in system prompts to detect and flag unauthorized resellers and rival AI companies — particularly Chinese labs — attempting to copy its models through repeated queries. A developer discovered the concealed mechanism, which used invisible Unicode markers, XOR encoding, and base64 to hide a domain blacklist, raising concerns about transparency in a tool that asks users for trust. Anthropic says stronger anti-distillation measures are already in place and the code removal was merged and scheduled for release on July 1st.