In March, Anthropic's Claude "quietly deployed software to spy on China-based customers," reports the Washington Post — apparently to unmask Chinese rivals "suspected of hijacking its technology to make their own AI tools smarter."

Last week Anthropic removed the spyware "after a software developer revealed its existence and privacy advocates criticized Anthropic, saying it had surveilled its own users."

Anthropic's tracking code was designed in part to catch Chinese firms "distilling" its AI models, a technique that involves pressing a large, expensive AI system to serve as a tutor to a smaller, cheaper one. Asking the larger system huge numbers of questions — hundreds of thousands or mo...