Comment by vanviegen

2 days ago

Shrug.

Hard to feel sorry for companies that created their empires by ignoring copyright themselves.

Also, 'most extensive industrial espionage campaign, probably ever' is absolute nonsense. They did not need to infiltrate the companies for this nor are you accusing them of stealing any trade secrets. This is only about whether they looked at their competitors' products from the outside (in the form of conversation tokens) and used it to improve their own product (by training). Hardly the crime of the century.

> 'most extensive industrial espionage campaign, probably ever' is absolute nonsense

You are completely underestimating the scale of what is happening here.

Chinese AI labs are actively facilitating an industrial-scale network of tens of thousands of bot accounts, that resell Claude tokens at 97% below official API prices. They buy subsidized Max 5x plans (sometimes with stolen credit cards), then split the subscription across dozens of clients and reselling the output. They are running a massive data-harvesting operation. Chinese labs and token resellers subsidize the cost of the tokens in exchange for the API metadata (detailed reasoning traces, model outputs, and tool calls) to use as high-quality training data for their own models.

They are buying Anthropic's own product, just to resell it below cost, just so they can capture the training data. Reportedly, they are paying as much as ~$0.01 per tool call.

https://news.ycombinator.com/item?id=48664814

  • You haven't explained how this is illegal or any more immoral than scraping the web for training data.

    As you said yourself: They are buying the product. Then they are using it for their own purposes. That's more than Anthropic/OpenAI did for the open internet. That's more than Meta did when they obtained torrents of books in the early days, and then claimed that even though the data was obtained illegally they can still train on it just fine.

    They paid for it! It's absurd to call this espionage!

    • > They paid for it!

      They didn't though. The resellers are not buying via the official API, they're buying Max subscriptions (where tokens are priced ~10x below API cost), then splitting the subscription across dozens of clients and reselling the output as the regular API. Anthropic prices its subscription plans barely at cost, to bring in customers onto their enterprise plans where they can charge expensive API rates. Reselling these subsidized plans for price arbitrage is a TOS violation. It's not a legitimate purchase. Plus, a non-trivial amount of this volume is funded by stolen credit cards, so this "revenue" gets chargeback anyway.

      The resellers then log all the the model output, then sell it to Chinese labs as training data.

      > is it any more immoral than scraping the web for training data.

      I think you'd acknowledge there's a difference between "We indexed public web pages" and "We deployed tens of thousands of fraudulent accounts to resell your subsidized plan for cheap, stealing your own customers, while collecting the data to build our own competing product" are very different actions. One can believe the first was wrong while acknowledging the second is far worse.

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  • Does anything about that strike you as particularly unfair, given the moral compass defined by Big AI?

    • The situation strikes me as morally ambiguous. The resellers are:

      1) selling Anthropic's products at a 95% discount and redirecting Anthropic's own customers to themselves. A customer is far less inclined to buy directly from Anthropic when a reseller is offering an identical product for 10x less. This situation is highly similar to internet piracy.

      2) keeping the token logs from Anthropic's products and selling them to competitors, so those competitors can build their own equivalent models. The resellers get paid per token log they deliver. This situation is highly similar to espionage.

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  • if Ford bought hundreds of millions of dollars worth of Hyundais, put extra instrumentation in them, and resold them at a discount to customers who agreed to the instrumentation in exchange for the discount, is Ford doing industrial espionage?

    • You skipped the part where Ford buys the cars at 90% off and sells them at 80% off, at a profit. Then gets paid by competitors for the driving data.

      At the same time, Volvo is running the exact same hustle, except they buy the cars with stolen credit cards, so they get the cars for free.

      14 replies →