China has firmly rejected accusations by US artificial intelligence company Anthropic that Chinese AI labs, including DeepSeek, Alibaba and Moonshot AI, carried out large-scale efforts to extract responses from its Claude models and use them to train their own systems.

The commerce ministry says distillation is ‘neutral’ and widely used by companies around the world, including American firms.

Anthropic accuses Moonshot AI of misusing Claude models. Anthropic best AI model by October 2026 at 69% YES.