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anthropic formally accused alibaba of conducting the largest known distillation attack against its claude model — a technique where a competing organization repeatedly queries a frontier model at scale to extract and replicate its capabilities into a cheaper local model. the accusation is the first major public corporate-versus-corporate legal or formal claim of this kind in the ai industry. if substantiated, it signals that model capability extraction via api abuse is now a recognized competitive threat vector, not just a theoretical one.

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