Anthropic Accuses Alibaba of Orchestrating Massive Illicit AI Cyberattack to Steal Core Capabilities

Key Stats for Alibaba Stock

• Price change for Alibaba stock: -3%
• $BABA Stock Price as of Jun. 24: $100
• 52-Week High: $193
• $BABA Stock Price Target: $189

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What Happened?

Alibaba (BABA) stock is under pressure after AI company Anthropic accused the Chinese tech giant of running the largest known distillation attack on its systems to date.

In a letter to the U.S. Senate Banking Committee dated June 10, Anthropic alleged that operators linked to Alibaba and its AI lab used roughly 25,000 fraudulent accounts to conduct 28.8 million exchanges with Anthropic’s models between April 22 and June 5.

What is distillation? It’s a method in which a weaker AI model is trained on outputs from a stronger, existing one. Essentially, it’s a way to copy AI capabilities without building them from scratch.

Anthropic said Alibaba carried out this attack despite the Trump administration’s warnings. In April, the White House issued a memo pledging to help AI companies fight industrial-scale distillation. Anthropic says Alibaba ignored it.

This isn’t the first time Anthropic has flagged this kind of threat. Back in February, the company identified similar distillation campaigns from three Chinese AI labs — DeepSeek, Moonshot, and MiniMax. This latest case appears to be significantly larger in scale.

Alibaba has not responded to requests for comment.

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What the Market Is Telling Us About Alibaba Stock

The accusations add fresh uncertainty around Alibaba stock at an already complicated time for U.S.-China tech relations.

Anthropic itself is facing regulatory headwinds — the Trump administration recently ordered the company to suspend access to its two newest AI models, Fable 5 and Mythos 5, for all foreign nationals, citing national security concerns.

For investors watching Alibaba stock, this story is worth monitoring closely.

Allegations of IP theft at this scale could invite further regulatory scrutiny or trade restrictions targeting Chinese AI companies.

Alibaba stock may continue to face selling pressure if the situation escalates.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!