Model distillation is an AI development technique in which a smaller model is trained using the outputs of a more capable system. While the method has legitimate applications, Anthropic contends that the activity described in its letter was conducted without authorization and was intended to extract capabilities from its models.
“We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the Administration to maintain American AI leadership,” an Anthropic spokesperson said in a statement.
Alibaba did not immediately respond to CNBC’s request for comment. Bloomberg first reported the existence of the letter.
Anthropic’s allegations arrive after the White House Office of Science and Technology Policy issued a memorandum pledging to support AI companies in detecting and coordinating responses to industrial-scale distillation efforts. In its letter, Anthropic said Alibaba proceeded with the alleged activity despite those warnings.
The company has previously disclosed concerns about similar activity. In February, Anthropic said it had identified three industrial-scale distillation campaigns involving DeepSeek, Moonshot, and MiniMax, warning that such efforts were becoming more sophisticated and urging collaboration among AI developers, cloud providers, and policymakers.
At the same time, Anthropic has been navigating its own regulatory challenges. Earlier this month, the company said it received an export control directive from the Trump administration requiring it to suspend access to its latest Claude models, Fable 5 and Mythos 5, “by any foreign national, whether inside or outside the United States, including foreign national Anthropic employees.”
Anthropic said the government cited “national security authorities” but did not specify the underlying concern. Company executives subsequently traveled to Washington to meet with members of the Trump administration. Anthropic told CNBC that “both parties are working quickly to get this resolved,” but has not said when access to the affected models could be restored.
This analysis is based on reporting from CNBC.
Image courtesy of Anthropic
This article was generated with AI assistance and reviewed for accuracy and quality.
