Key Takeaways
- Anthropic is moving to close loopholes that allow Chinese entities to access its advanced Claude models, following reports of large-scale "distillation" attacks by firms like Alibaba.
- Kuaishou Technology (01024) has filed for a US$3 billion funding round for its Kling AI unit, valuing the spin-off at approximately US$18 billion ahead of a planned Hong Kong IPO.
- Gymshark founder Ben Francis is in talks to buy back a significant stake from General Atlantic, potentially increasing his ownership above 70% as the brand navigates a drop in pre-tax profits.
- A 6.02 magnitude earthquake struck Japan’s southwestern Ryukyu Islands at a shallow depth of 10km; while felt across Okinawa, no immediate major damage or tsunami warnings were issued.
Anthropic Targets Chinese Access Loopholes
Anthropic has initiated a crackdown on unauthorized access to its Claude AI models by Chinese laboratories, according to reports from the Financial Times. The move follows the company's identification of industrial-scale campaigns by firms including Alibaba, DeepSeek, and Moonshot to "distill" Claude’s capabilities into their own models.
The company recently disclosed that Alibaba alone generated over 28.8 million exchanges using approximately 25,000 fraudulent accounts to extract model data. These restrictions align with broader U.S. Department of Commerce efforts to prevent frontier AI technology from being weaponized or used to bypass national security safeguards.
Kuaishou’s Kling AI Files for $3 Billion Round
Kuaishou Technology (01024) is seeking to raise US$3 billion for its video-generation unit, Kling AI, in a move that would value the entity at US$18 billion. The funding round reportedly includes participation from tech heavyweights and state-backed investment vehicles, signaling strong confidence in China's generative AI sector.
Kling AI has seen its annual recurring revenue (ARR) run rate hit roughly US$500 million following the successful release of its latest video models. The company aims to initiate a Hong Kong listing process within the next 12 months to capitalize on the surging demand for AI-driven content creation tools.
Gymshark Founder Eyes Stake Buyback
Ben Francis, the founder and CEO of Gymshark, is in negotiations with private equity firm General Atlantic to repurchase a portion of the 21% stake it acquired in 2020. Francis is reportedly seeking bank financing for the deal, which would solidify his control over the fitness apparel giant with a stake exceeding 70%.
The buyback talks come as Gymshark reports a decline in pre-tax profits to £6.9 million, down from £11.8 million the previous year, despite a 6.5% increase in revenue to £647 million. The company is currently pivoting toward an omnichannel strategy, opening physical flagship stores in major global hubs like London and New York to offset cooling e-commerce growth.
Seismic Activity in Southwestern Japan
A 6.02 magnitude earthquake jolted the Ryukyu Islands near Okinawa early Friday morning, according to the GFZ German Research Centre for Geosciences. The quake occurred at a shallow depth of 10.0 km, a factor that typically increases the intensity of shaking felt at the surface.
Local reports indicate the tremor was felt as light shaking in Miyakojima and Kumejima, though the Japan Meteorological Agency did not issue a tsunami warning. No abnormalities were reported at regional nuclear facilities, and early assessments suggest minimal structural damage to local infrastructure.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.