China Investigates DeepSeek and Moonshot Over User Data Leaks
China's internet regulator is investigating DeepSeek and Moonshot over user data that may have reached Anthropic, according to a report by The Information. All seven labs named in Anthropic's report were summoned.
Background
On September 22, 2026, it was reported that the Cyberspace Administration of China (CAC) is investigating both companies due to examples detailed in Anthropic’s report. Jing Yang and Qianer Liu from The Information broke the story.
Key Points:
- The CAC summoned all seven companies named by Anthropic but quickly focused on DeepSeek and Moonshot.
- Regulators have questioned staff at both companies. The investigation is ongoing, and no penalties have been decided. Neither company has commented publicly.
- The Cyberspace Administration licenses AI services in China, regulates data flows, and can order products withdrawn.
Trigger
The investigation was prompted by an American company's report: Anthropic’s threat intelligence report published on September 10. Anthropic claimed that seven China-based labs had been using Claude to harvest its AI output without permission. This practice is referred to as "illicit distillation."
Details from the Report
The report highlights misuse between December 2025 and August 2026, with:
- Alibaba accounting for over 151 million requests.
- Moonshot AI having around 23 million requests.
- DeepSeek with more than 12.1 million exchanges within 14 days in July.
Anthropic described how traffic was detected, including the use of fraudulent accounts to spread requests across many identities.
Focus on Moonshot
One notable example involved a user suspected of being affiliated with the People’s Liberation Army (PLA). This user asked Moonshot’s Kimi model to analyze surveillance footage tracking a person across hundreds of police cameras in Chengdu, including locations near PLA facilities and defense-linked institutes. Moonshot allegedly forwarded the request and footage to Claude without informing the user.
Conclusion
The investigation is ongoing, with a focus on DeepSeek and Moonshot due to the specific examples detailed by Anthropic.