This week in AI is dominated by geopolitics and power plays. Anthropic has disclosed the largest known AI model distillation attack in history -- 25,000 fake accounts and 28.8 million Claude interactions orchestrated by operators linked to Alibaba's Qwen lab. Meanwhile, Google has rationed Meta's access to Gemini AI models amid a compute capacity crunch that delayed multiple Meta AI projects. And Austria has formally lobbied the EU to host Anthropic on European soil, a direct response to US export controls that briefly shut off global access to frontier models.
Stories covered this episode:
Anthropic vs. Alibaba -- 25,000 fraudulent accounts, 28.8 million interactions, and a formal letter to the US Senate calling it AI capability theft at industrial scale. https://www.bbc.com/news/articles/cwyklykn5dwo
Google limits Meta's Gemini access -- Compute demand outstripped supply; Meta's internal AI projects delayed; staff told to cut token usage. Reported by the Financial Times, June 28. https://www.cnbc.com/2026/06/28/google-limits-metas-use-of-its-gemini-ai-models-ft-reports.html
Austria lobbies EU to host Anthropic -- Austria's State Secretary for Digitalization writes to the European Commission, urging the EU to offer Anthropic a home amid US "AI kill switch" fears. https://www.bloomberg.com/news/articles/2026-06-28/austria-lobbies-eu-to-host-anthropic-after-us-access-curbs
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