Valuetainment - ＂You Built A MONSTER!＂ - Anthropic WARNS Of Massive Chinese AI Copying Operation

00:00:00.000 let's talk about anthropic okay so anthropic causes chinese ai labs of distillation attacks

00:00:07.540 on its models okay this is a financial time story and there's a couple anthropic story we can start

00:00:12.960 off with this one brian i'm gonna come to you first okay uh on this and then we'll go to the

00:00:17.240 other anthropic story as well so uh let me see what page is this on anthropic rob it's on 19

00:00:23.800 let me go to page 19 with this um anthropic uh has accused three leading chinese ai labs

00:00:34.080 of industrial skill attacks raising national security concerns for the industry the ai startup

00:00:40.440 which developed the popular coding tool clawed said on monday that deep seek moonshot and minimax

00:00:47.480 conducted industrial skill distillation attacks on our models distillation refers to the practice

00:00:53.340 of training smaller models on the outputs of more advanced systems allowing developers to

00:00:59.260 replicate high-level performance without the same computing resources it has become increasingly

00:01:04.100 sensitive issue as chinese ai groups grapple with sweeping u.s export uh controls that restrict

00:01:11.700 their access to nvidia's most advanced chips including its blackwell series those curves have

00:01:17.600 forced companies to adopt alternative strategies such as training models overseas using older

00:01:23.320 or smuggled semiconductors and cutting costs through engineering efficiency san francisco-based

00:01:28.960 anthropic said it had identified 24 000 fraudulent accounts and generated over 16 million exchanges

00:01:35.320 with cloud which it alleged the company used to train and improve their own models brandon thoughts on

00:01:40.080 this yes story as old as time in terms of china trying to take intellectual property from other

00:01:44.920 companies because they're not able to be as sophisticated as us in developing things just because the way

00:01:49.520 their economy is structured but um the even though we've had those restrictions on the nvidia chips

00:01:55.540 you know since um i think even biden put those restrictions and they still found their way over

00:01:59.720 there so i think that we need to be um much stronger on china and i mean that's why things like the tariffs

00:02:04.640 are important that's why i mean any measures are important when in terms of being able to inflict pain on

00:02:09.160 them because they they are trying to undercut our companies and when it comes to something like

00:02:13.420 anthropic that's becoming a potentially major part of you know uh defense and national security that

00:02:18.360 that's not just an economic matter it's not just a business matter it's a matter of you know national

00:02:22.760 protection so um i think that's like all the more reason to not let china have access to the black

00:02:27.640 wall chips like they're lobbying for like because i feel that trump is contemplating it i feel that people

00:02:32.100 are in his ear telling him oh maybe it wouldn't be so bad because he like they're going to try and take

00:02:35.900 alternate routes and like develop their own stuff and it might motivate them to make their own you

00:02:39.980 know version of these chips instead of using ours but no i i think that we could double down on

00:02:44.320 what we're doing but i'm not letting them have that kenneth your thoughts

00:02:47.700 well uh i mean i once asked someone who's a big investor in silicon valley do you think china's going

00:02:57.120 to get quantum you know computing before we do and he said only if they steal it and i think you know

00:03:04.940 when we're developing all this stuff that just is a constant threat and and with ai it's just huge

00:03:11.660 and i think it's one of the challenges of we want to integrate with china a lot of the world's problems

00:03:17.160 cannot be solved without the u.s and china acting together but on the other hand you know how do we

00:03:23.600 protect how do we stay so open and dynamic i'm in a university system where we really want to be open

00:03:30.040 without being vulnerable like this it's it's very challenging tom the the first moment of every

00:03:36.520 new technology is faced with the second moment which is the first piracy and the first security

00:03:41.900 threat um barracuda makes email security well barracuda didn't exist till there was email pat right

00:03:48.740 and then when there was email and then there was problems and there was spoofing and everything that

00:03:53.460 happened then barracuda gets born because now they know what they're inventing against what you have

00:03:58.800 here with each new technology you've got techniques of theft techniques that make it vulnerable for the

00:04:04.060 people that are using it and they're seeing right now what anthropic is saying whoa wait a minute wait a

00:04:08.500 minute wait a minute they're using 24,000 you know fake accounts to to use prompts and calls

00:04:16.200 into claude so that they are figuring it out and they are taking that distillation they are distilling the

00:04:22.520 response of clause and back engineering think of it this way what they're doing is you have a bottle of coke

00:04:28.740 remember that we all talk about the the recipe for coke we all talk about intellectual property

00:04:33.320 woody do you have it in a vault like the recipe for coke it's something that we chat about and we make that

00:04:38.700 joke in american business in case studies well what if you had a way to perfectly figure out the breakdown the

00:04:48.620 formula for coke and then perfectly copy it well obviously in the u.s someone would say wait a

00:04:53.680 minute you somehow figured this out you perfectly copied it i have a trademark i'm taking you to court

00:04:57.900 but what if that other player is china this is exactly what's happening they're using distillation

00:05:03.640 so now they need help but they also need security so the birth of any technology leads to inevitable

00:05:11.180 security look at now if you've got mcafee or you have norton on your uh which is intel on your computer

00:05:19.280 you have browser protection you have email spam protection you have wi-fi protection you have

00:05:26.380 credit card vault protection you have um malware adware protection and all of these things happen

00:05:34.400 because now you need you know to be protected no drug was invented without a disease being there first

00:05:40.420 you agree yeah more or less but um i don't know i i think uh part of it is that uh we we have given

00:05:48.600 too much leeway to china we like the same thing happened with russia too like we give like a dose

00:05:53.960 of assistance these countries and we we turn them into a monster that actually has the power to take

00:05:58.360 from us so i i think um you know part of it's a creation of our own because you know like china's where

00:06:03.880 it is today because of us like russia's where it was in the 80s because of us like so we have this

00:06:09.220 history of like sort of creating the monster that we end up fighting against i don't know if that's

00:06:12.720 on purpose or not it might be on purpose might be more financially uh beneficial if it's on purpose

00:06:17.700 for the for for us you do i don't know if it's for us i think it's for whoever the president is at the

00:06:25.360 time when when uh nixon built china from number 11 economy to 12 economy 10 economy to number two

00:06:33.780 and he opened it up he did it because he wanted a weakened soviet union right it was kind of like

00:06:38.540 one of those things where at that time it's like that's what we have to do right never did he realize

00:06:43.820 you built a monster you know you build a monster once they realized capitalism how it works and the

00:06:50.660 you know he went and met with the japan prime minister and they told him you have only five banks

00:06:55.080 yeah you need you know this many bankers you need this many you know to be open they open up like

00:07:00.500 5 000 banks i don't know what the number went to we used to have 14 15 000 banks i think we're down

00:07:05.440 to four or five thousand banks ourselves today and it's getting same things happening here even to

00:07:10.240 our military contractors we have to we used to have 70 80 now we only have seven or eight competing for

00:07:15.740 all the contracts they have a monopoly there's no more that competition that we once uh used to have

00:07:20.940 they call it the prime i think those guys the the main military contractors are considered the prime

00:07:25.780 uh joe lonsdale was talking about that but to me you know anthropic if you want to continue with

00:07:30.260 this here's anthropic digs in heels in dispute with pentagon sources say rob i think this is a

00:07:35.600 reuters story you got a video clip on this one here if you want to bring this one up go for it rob

00:07:41.580 nervousness is there in the relationship between the department of war and anthropic at the moment

00:07:46.300 this is a really super fascinating story we were talking about earlier in the show that basically the

00:07:50.560 clod tool they want safeguards against basically mass surveillance presumably for american populations and of

00:07:56.880 course having basically kill orders being required to be given by human beings absolutely and these

00:08:02.540 kill orders have been something that have been uh sort of uh getting a lot of attention on social

00:08:06.580 media on the x platform for example uh they really ramped up last week actually with some of these

00:08:11.100 conversations and i think this comes down to again this the big question which is who owns the data

00:08:18.100 data and who has access to the data data in the wrong hands can obviously be used for for bad purposes

00:08:24.460 like with any technology so i think the question why whilst this uh discussion has led to a delay

00:08:31.300 with the agreement is around who's going to own the tools who's going to own the data and who can use

00:08:37.120 what with that data and you know that that's a big question for any of these big taking you know tech

00:08:43.640 uh platforms that we have going forward i think how much of a risk does that pose to the company

00:08:47.080 itself as you say you know there are other there are other ai players out there if it's not them

00:08:51.320 will it just be invariably somebody else or do they have the kind of power to have that leverage at this

00:08:55.640 point i think at this point there are three or four platforms that had the scale um that could be an

00:09:02.380 alternative source um so i i think it's not it's not exclusive necessarily tom thoughts so i think he's

00:09:10.340 this this came up over the last three days so in that you've got this fight saying um the department

00:09:19.380 of defense is getting very upset because they wanted unrestricted use but the companies were saying but i

00:09:24.800 don't want you to use it on surveillance on people i don't want you to create a surveillance state out of

00:09:29.680 it so i'm not going to let you have access to all features if you're just going to use it to build

00:09:34.440 surveillance state and the government is like hang on you don't tell me what to do but they're

00:09:41.620 stepping back saying but wait a minute you know we don't want this and the first place it's going to

00:09:46.140 hit is europe because europe is hyper concerned about the surveillance state but the complete irony is

00:09:52.080 they they like gave it up first you know the the idiots so that's what's that's what's going on here

00:09:58.600 you've got a a company showing itself to be altruistic oh don't use this for this or this

00:10:04.900 hey we hunted down this uh we hunted down this guy el mencho because we used palantir to kind of track

00:10:12.440 down his girlfriend figure out where she was going and cell phone and this other thing and palantir

00:10:17.460 helped us find and get him oh that's kind of cool we got a bad guy but then five minutes later it's like

00:10:22.700 they're like wait a minute wait a minute you can't use this to create surveillance state

00:10:27.260 on the american people or to create this you know if you're going to if you provide it to the

00:10:32.740 government the government's going to do whatever they want with it you give gunpowder to the

00:10:35.760 government they're just going to use it to make as as big and as many and as complex bombs as possible

00:10:40.860 you can't say oh don't use that to make this kind of bomb that's not going to happen the minute

00:10:45.340 you're providing this as a defense contractor that utility it's going to get used by all of the

00:10:50.660 three-letter agencies you don't get to dictate how to you how to if i paid for it i'm going to use

00:10:55.340 the software whatever way i want if i go buy a product so it puts in a very weird situation can

00:11:00.300 it um i want to first pick up on something you said patrick about how the number of contractors

00:11:05.360 is shrinking i know a young man who uh went to a very good university but decided to go to the navy

00:11:12.980 for five years and he's very involved in procurement and i was talking to him and he said you can't believe

00:11:19.800 it how few bidders we have it's shrunk and shrunk and shrunk and they just charge us whatever they

00:11:25.880 like for everything when we want to buy a part in the navy it costs a fortune because there aren't

00:11:30.300 many people to bid it out to and it actually you know somewhat leads into this that with uh tech

00:11:36.140 they're going to be very few it's network effects winner takes all and so these big tech companies will

00:11:43.180 will have a lot of negotiating power now i do think safety is a real issue a lot of very talented

00:11:51.260 young people or at least a few are walking away from massive holdings of equity in these big ai

00:11:58.920 companies because they work on safety or are concerned about safety and they're walking away

00:12:05.160 from it and i i think removing checks and balances on that's been a mistake the arguments we got to beat

00:12:13.280 china but what's wrong with that is china ends up getting everything that we do so if we accelerate our

00:12:21.140 ai maybe it keeps us like you know a month ahead of them for a while but it actually speeds up what

00:12:27.580 they're doing i think safety and ai thinking about regulation and ai is a it's a mistake that we're

00:12:36.040 not doing it and i'm all for the zeal for deregulate and let's not have bad regulations but i think

00:12:43.280 actually this is the biggest thing that i kind of worry about at night with what we might be doing

00:12:49.780 wrong absolutely i mean if you think about what sort of civilization changing job changing everything

00:12:56.660 changing ai is what to be concerned about and i think slowing it down a bit there are various ideas

00:13:03.780 i don't want to endorse any of the crazier ones but their ideas uh it would be moving in the right

00:13:09.600 direction um yes it's funny that two years ago or even three years ago now there was that whole

00:13:15.380 committee of serious people that were they were the committee to regulate ai i think elon musk was on

00:13:19.860 a couple big names were on and that totally disappeared but this guy i don't believe this guy at all i

00:13:24.540 think that this is a good marketing stunt because it sounds really good to say but there's a reason

00:13:28.120 the government's never regulated um how they use data you know so it's a sweet deal to for companies

00:13:33.720 to have a relationship with the government where the government's able to use their data the company

00:13:36.880 the data is very valuable to companies too but you've never heard a peep about regulating the way

00:13:42.240 the companies use data because they don't want to touch that like but you hear regulation talk about

00:13:46.620 everything so i don't think it's a coincidence that they haven't mentioned that about data not once ever

00:13:51.280 yeah yesterday when i was talking to uh uh joe lonsdale about palantir rob what did he say

00:13:57.640 what percentage of their revenue comes from government contract did he say 51 percent or 49 percent i thought

00:14:03.560 i'd have to look no it was some number like uh it was around 50 percent what he said i'm curious because

00:14:09.920 to me i was like where's the other 50 percent coming from government contractors maybe well that could

00:14:15.180 be that they left so it's still tied to it anyways right still tied to it anyways i said so what role do you

00:14:20.480 guys play and then who can you not sell to who can you not sell your services to and he kind of went

00:14:26.840 through something yeah 55 percent there it is government contracts represent roughly 55 percent

00:14:30.960 of total uh revenue in 2025 but uh you know are the other ones still tied to someone that's using them

00:14:39.180 while competitors like microsoft and well i i don't know i don't know what's going to happen because

00:14:44.260 they're now they never thought one of the investors one of the early investors in uh palantir was uh

00:14:51.920 the cia's uh uh investment in cutel say in cutel in cutel yeah and they gave him two million dollars

00:14:58.420 and it was what they were spun off from the um total information awareness uh committee that after 9-11

00:15:03.660 so it was like it was something that was rejected by congress to do from a government standpoint that

00:15:07.340 was turned into a company what he said to me when i asked him i said what was the mission

00:15:11.700 do you know how rob how quickly did he give the right away and by the way there was no uh hesitation

00:15:20.040 and shameless it was let me let me see rob say it rob what did he say the mission was protect america

00:15:26.200 protect america from who the terrorists it specifically is that protect america western ideology

00:15:34.600 from uh islamic extremists he added islamic extremists i said that was really your mission at the

00:15:41.180 beginning yeah absolutely i said the first few hundred people that you hired would you tell

00:15:46.000 them that in the interview more or less we would so so the the true concern of where it's going and

00:15:53.360 what that information comes i mean they tracked el mencho's girlfriend who was an only fans girl i

00:15:58.180 don't know if you saw this one or not can you imagine they tracked what she did you hear about

00:16:02.000 this or no i did hear about yeah so they caught el mencho that's el mencho by the way the first one i saw

00:16:06.280 this el mencho i thought this guy was the same guy from the movie carlito's way what's the guy's name

00:16:11.280 you know who i'm talking about what is the actor's name he's got a weird last name he hates trump by

00:16:15.880 the way john leguizamo john leguizamo by the way tell me he doesn't look like john leguizamo

00:16:20.240 he looks just like him so apparently the girls is an only fans girl and they tracked her and through

00:16:25.660 that they got him so you you're making a point tom like there is some good that's going to happen

00:16:31.020 with that but what other things could you do with this different types of sales leaders i've worked

00:16:35.980 with the last 20 years one of them are those that are boss that are telling you what to do one of

00:16:40.000 them is one that wants to be a friend he wants to say hey johnny let me help you get to this next

00:16:43.500 level and then the other one is the leader the leader that's sitting down with you accountable

00:16:46.680 challenge pushing you you can do more expectation business planning each one of them has pros and blind

00:16:53.320 spots once here i host an event called the sales leadership summit this year we're doing it at the

00:16:57.680 beautiful trump throughout march 25th through the 27th where we talk about topics like this 200

00:17:03.540 plus pages in a manual where people from around the world you have to do a minimum of a million

00:17:07.700 dollars a year and five sales people to qualify to attend this so if you're someone that's watching

00:17:12.240 and saying i think i'm like a boss i think i'm like a friend i think i'm a leader i want to find my

00:17:16.180 blind spots click on a link below fill out the information one of our consultants will get a hold of

00:17:20.480 you click on a link i do believe the executive tickets have sold out but there's two other tier

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Valuetainment - February 27, 2026

＂You Built A MONSTER!＂ - Anthropic WARNS Of Massive Chinese AI Copying Operation

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