It's not really paranoia if it's happening a lot. They wrote a blog post calling several major Chinese AI companies out for distillation.[0] Perhaps it is ironic, but it's within their rights to protect their business, like how they prohibit using Claude Code to make your own Claude Code.[1]
[0]: https://www.anthropic.com/news/detecting-and-preventing-dist... [1]: https://news.ycombinator.com/item?id=46578701