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Anthropic accuses Alibaba of massive AI model theft, sparking U.S. Senate scrutiny and Alibaba shares drop further.

Market News
25 Jun 2026
24/7 Wall Street
View Source
Bearish
pluang ai news

Anthropic has accused Alibaba of conducting the largest known distillation attack on its Claude AI models, using about 25,000 fraudulent accounts to harvest over 28.8 million interactions between April and June 2026. This allegation, sent to U.S. Senators Elizabeth Warren and Tim Scott, elevates the issue from a private dispute to a national security concern amid rising U.S.-China AI tensions. Alibaba's shares fell sharply following the news, adding to a year-long decline amid ongoing regulatory and financial pressures. Investors will watch for Alibaba's response, potential Senate hearings, and Anthropic's evidence to gauge future risks to Alibaba's AI business and valuation.

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Anthropic accuses Alibaba of illicitly extracting AI tech via massive distillation attack.

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Anthropic accuses Alibaba of illicitly extracting its AI tech via massive distillation attack.

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