Anthropic details distillation efforts by Chinese companies, like Moonshot and DeepSeek, sending user queries to Claude via "transfer stations" outside China (Wall Street Journal)

Anthropic says Chinese companies including DeepSeek and Moonshot used thousands of fake accounts and routed millions of real user queries through offshore “transfer stations” to access Claude for model distillation, highlighting a growing risk of AI IP leakage and unauthorized capability cloning. For CIOs and technology leaders, the takeaway is that generative AI adoption now carries not just data security and compliance risk, but also strategic exposure around model misuse, vendor controls, and the need to govern how employees and third parties interact with external AI services.