China Regulator Investigates DeepSeek, Moonshot AI Over Alleged Rerouting of User Data to Anthropic's Claude

China's internet regulator is investigating leading artificial intelligence startups DeepSeek and Moonshot AI following allegations from Anthropic that the companies secretly rerouted millions of user queries to Claude without customer consent. The Cyberspace Administration of China, the country's leading internet authority, opened the probe after Anthropic published a 154-page threat intelligence report on September 10 detailing what the company termed illicit distillation campaigns by seven Chinese AI labs, with DeepSeek and Moonshot AI becoming the focal point of regulatory scrutiny.