Anthropic says China's AI tigers are copycats

This month Anthropic and Open AI each disclosed evidence that leading Chinese AI labs have illicitly used American models to train their own. The firms accuse Chinese researchers of aggressively "distilling" American chatbots—feeding them prompts in order to learn from and mimic their responses.

Sector: Electronic Labour | Confidence: 90%
Source: https://www.economist.com/china/2026/02/25/anthropic-says-chinas-ai-tigers-are-copycats

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Council (3 models): Chinese AI labs are actively replicating American models through distillation, exploiting gaps in intellectual property protection. This practice challenges traditional IP frameworks and intensifies cross-border competition, as U.S. firms accuse Chinese labs of unauthorized replication. The dispute raises regulatory tensions and prompts investors to reassess AI model defensibility, while insurers evaluate new cyber risks tied to model integrity. The situation underscores the fragility of IP in generative AI, where the line between learning and theft remains contested.
Cross-sector: Finance, Insurance, Real Infrastructure

  ? What specific legal or technical measures are U.S. firms implementing to prevent future model distillation?
  ? How are Chinese AI firms justifying their use of distilled American models in public statements?
  ? Are there emerging legal frameworks or international agreements addressing AI model replication?

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