Alibaba Group Holding Ltd's Hong Kong‑listed shares fell 5% to HK$94.55 by 02:40 GMT on Thursday, marking the lowest level since February 2025. The decline followed a report that U.S. AI startup Anthropic had sent a letter to U.S. senators and White House officials accusing operators linked to Alibaba’s Qwen AI lab of conducting a large‑scale “distillation” campaign that used roughly 25,000 fraudulent accounts to generate more than 28.8 million interactions with Anthropic’s Claude model between 22 April and 5 June. Anthropic said the activity was intended to extract advanced model capabilities for use in rival AI systems owned by Alibaba. The allegation represents the largest known distillation effort against Anthropic and comes amid heightened U.S. scrutiny of Chinese access to advanced American AI technologies. In the United States, Alibaba’s U.S.-listed shares closed 3% lower on Wednesday.