Find XO: Frontier Models Leak Through Distillation, The Real Moat of Companies Built on APIs (cybersecuritynews.com)

- Anthropic has accused Alibaba. - It is claimed that between April 22 and June 5, Alibaba used 25,000 fake accounts to exchange 28.8 million interactions with Claude, extracting the model's capabilities. - If gathering enough outputs alone allows one to catch up with frontier models through distillation, then merely having the latest model is not a moat. - Let's consider whether our product has unique data, a place in the workflow, or distribution channels, things that can't be obtained by just collecting outputs.