Model Copying Claims Add New Risk to AI Stocks  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

February 25, 2026   |   Read Online Not a fan of Fred? Unsubscribe here.   AI's New Risk: Can Top Models Be Copied? Model Copying Claims Add New Risk to AI Stocks February 25, 2026 MorningBullets is the fastest way to catch up on the market and political news that matter most to your money. Quick takes, sharp insight, and curated opportunities—served fresh every weekday morning. Sponsored Content The Calm Before the Attention Arrives Hey Reader, Before a company ever shows up on everyone's screen, there is a quieter phase. No urgency. No headlines. Just steady positioning. That is the moment we focus on. We are currently monitoring a small group of companies where this "groundwork" is being laid right now. Access our full list and analysis below. Access the "Quiet Phase" Report By clicking the link you will automatically be subscribed to the Kryptonstreet Newsletter (Privacy Policy) AI Innovation Meets Geopolitics Good Morning, Under the surface a new fight is brewing in AI. Anthropic says Chinese firms copied parts of its Claude model using a technique called distillation, raising fresh concerns about intellectual property and national security. We break down what happened, why it matters for AI leaders and investors, and what it could mean for tech policy as the U.S. and China compete for dominance. If you're indexed to the S&P or heavy in AI winners, this is the one to read PepsiCo extends its 54-year dividend growth streak despite softer volumes, AI missteps drive record C-suite turnover, and Meta eyes a stablecoin comeback through a Stripe partnership. Don't forget to voice your opinion in my polls below. Here are your Morning Bullets. – Truly yours, Fred Frost 📉 Yesterday's Market Recap Yesterday, the Dow climbed 0.27% to 48,935.82, buoyed by Home Depot's earnings beat, but the NASDAQ and S&P 500 slipped 0.39% and 0.30% respectively as tech faltered. Inflation worries and tariff turbulence kept sentiment uneven, with commodity prices like gold dropping 1% to $5,171.10. Home Depot Beats Expectations: Q4 earnings hit $2.72 per share on $38.198 billion revenue, exceeding forecasts and lifting the Dow. → Benzinga Larimar Therapeutics Soars 41%: Shares spiked after FDA granted breakthrough therapy designation for its ataxia treatment. → Stocktwits Tech Drags Markets Down: NASDAQ fell 0.39% to 22,538.28, reflecting broader uncertainty in AI and tech valuations. → The Street 📉 Daily Performance Snapshot Index/Asset Closing Value Change S&P 500 6,890.07 +52.32 (+0.77%) Nasdaq 22,863.68 +236.41 (+1.04%) Dow Jones 49,174.50 +370.44 (+0.76%) Gold $5,228.55 -0.32 (-0.01%) Crude Oil $66.72 +0.41 (+0.62%) Bitcoin $64,873.00 +1,804.00 (+2.86%) 10-yr Treasury Yield 4.03% +0.004 (+0.10%) 🔭 What to Watch Today Today's calendar has potential market movers, from tax policy insights to consumer sentiment data. Keep your eyes on these events for ripples in equities and beyond. MarketWatch Tax Webinar (1:30 PM ET): A live discussion on 2026 tax changes and AI in financial planning could signal shifts for investor strategies. → MarketWatch Consumer Confidence Fallout: After February's modest rise to 91.2, watch for analyst reactions that might sway retail and discretionary stocks. → ABC News Fed's Next Move: Goolsbee's stance on holding rates until inflation cools further could pressure bond yields and equities. → CNBC 💡 Opportunity Watch Amid market choppiness, a few sectors and stocks are showing promise tied to recent economic shifts. Here's where the smart money might look today. Kosmos Energy (KOS): Up 130% YTD, this pure-play upstream oil stock is a high-leverage bet on crude prices with outsized gains potential. → Benzinga Gold as a Hedge: Despite a 1% dip, a 5-10% allocation to gold could shield retirees from equity volatility amid tariff uncertainty. → Money Sponsored Content Hedge Funds Are Rotating to Hardware While retail traders chase hype, smart money is moving into the hardware layer powering AI itself. Our research highlights three U.S. companies leading this quiet surge: one with 76% data-center growth, another with a massive backlog from global hyperscalers, and a third supplying next-gen chips with 59% margins. When everyone else notices, the easy gains will be gone. View the Premium Research Report By clicking this link you agree to receive emails from StockEarnings and our affiliates. You can opt out at any time. Privacy Policy. The Big Bullet Anthropic says Chinese firms copied parts of Claude as it rolls out new tools What happened: Anthropic, the company behind the Claude chatbot, said three Chinese firms copied parts of its system by using a technique called "distillation" that learns from a model's outputs. They say the firms used access to Claude and then trained their own models to act similarly, which could break rules and raise security concerns. In the same news cycle, Anthropic's live AI event highlighted new product updates and how it plans to sell more tools to businesses. The claim was reported in a report on alleged copying of Claude by Chinese companies. The company did not say the full size of the damage, but it framed the issue as both a business and a national-security risk. The story comes while AI makers are racing to release stronger models and more features. That fast pace can make it easier for rivals to learn from public tools and copy behavior. Anthropic's comments add to a growing list of disputes about who owns training data and model know-how. Why it matters: If AI models can be copied quickly, the leaders may have a harder time earning back what they spend on chips, data, and staff. That can pressure profits for AI labs and for big tech firms that fund or host them. To respond, companies may tighten access, add more checks, or push harder into paid products like new AI legal tools aimed at lawyers. Stronger controls can also slow down small developers who rely on open access to test ideas. The dispute also feeds into U.S.-China tech tension, which can lead to tougher rules on data sharing and advanced computing. For investors, the key risk is that legal fights and security rules can change who can sell AI services, and where. At the same time, steady business demand matters, and new enterprise plugins for Cowork signal a push to lock in workplace customers. That could support revenue, but it may also raise costs for compliance and monitoring. What's next: Watch whether Anthropic files formal complaints, changes its terms of service, or asks cloud partners to block certain traffic. Any public evidence it shares could shape how other AI firms handle copying claims. Policy signals matter too, since Fed officials are now talking openly about AI's risks and job impacts, which can influence future rules and spending. Investors should also watch how fast AI-driven growth shows up in the real economy, and whether it brings new volatility. One angle comes from a note warning that AI can lift growth while raising tail risks. On the business side, pay attention to pricing changes, limits on free use, and new paid bundles for companies. If limits get tighter, smaller app makers may shift to other models, which can move market share fast. Finally, track any new headlines from China or U.S. agencies that connect AI copying to security reviews or export rules. How Google is dealing with large-scale attempts to extract and clone its own AI model's reasoning capabilities, a practice very similar to the distillation concerns Anthropic raised – Computer world. How distillation techniques blur the line between standard AI practice and unauthorized copying, and why lawmakers and companies are pushing for clearer IP rules. – winston.com Reader Feedback Last time, I asked you: Who do you trust least to keep prices from going up? The majority of you at 43% said "The White House" David from Arizona replied: "I trust the White House the least because prices keep going up and it doesn't feel like they're fixing it." Here's what I'm asking you today: Who do you think is most at fault if AI models are being copied? U.S. tech companies for not protecting their models better Chinese AI firms for copying the technology U.S. regulators for not setting clear rules This is just normal competition in tech Unsure / no opinion Other As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts. 🧭 Policy & Market Ripples PepsiCo's Dividend Streak: A 4% dividend hike marks 54 years of increases, despite a 2% volume drop, signaling resilience in consumer staples. → The Street AI Leadership Reckoning: Record C-suite turnover in 2025 tied to poor AI ROI suggests firms must rethink strategy, not just tech. → Fortune Meta's Stablecoin Revival: Partnering with Stripe for a dollar-pegged token, Meta aims to reenter crypto despite regulatory headwinds. → Stocktwits 📜 This Day in History – February 25 February 25 is a case study in systems-building — patents that shape industries, financial infrastructure that stabilizes markets, design revolutions that redefine modernity, and communication networks that shrink distances. 1862 – The U.S. Congress authorized the issuance of paper currency, converting money into a scalable, standardized technology that reshaped national finance. 1913 – The Federal Reserve Bank of Kansas City was established, part of the early rollout of America's modern central banking infrastructure. 1925 – The Bauhaus school relocated to Dessau, cementing its identity as a hub of industrial design, functional architecture, and global creative influence. 1928 – The world's first regularly scheduled television broadcasts began in London, previewing the medium that would become the century's dominant cultural distributor. Today's Trivia Which of the following would most likely cause the value of a country's currency to increase? A) Higher interest rates compared to other countries B) A sharp rise in unemployment C) A growing trade deficit D) Political instability 91% of you chose the right answer to our previous trivia question: Which of the following would most likely increase inflation in the short term? The stock market is designed to transfer money from the active to the patient. – Warren Buffet Thanks for Reading. Stay Sharp. Stay Focused. Fredrick Frost Editor, MorningBullets   Update your email preferences or unsubscribe here © 2026 Morning Bullets 20 North Orange Ave. Floor 11 Orlando, Florida 32801, United States Terms of Service