Anthropic’s anti-China AI blocks: Company embeds ‘spyware’ code to prevent distillation

US tech firm Anthropic is employing advanced code to block Chinese users from its AI models, citing national security concerns. The company has identified and suspended accounts suspected of being Chinese-controlled, and is actively combating proxy networks. This aggressive stance follows an accusation that Alibaba engaged in a massive AI “distillation attack,” attempting to clone Anthropic’s advanced capabilities at a fraction of the cost.