That sounds like it would actually be fraud.

Not if you simply say in the terms of service that it's allowed. Then suddenly it's normal (every company does this). Similarly to how the terms of service can simply say you're not allowed to sue.

> how the terms of service can simply say you're not allowed to sue.

That doesn’t necessarily mean much. You can put plenty of outrageous statements into any contract that automatically doesn’t make them binding.

It's maybe how it works in the US, but that sure as hell not how it works in the EU (my snark wants to continue as "or any sane legislature")

Anthropic is based in the US. Unfortunately, too late to edit my comment to say "US company"

That's an interesting point but I'd ask who would Anthropic be defrauding?

The Chinese resellers that are happily operating outside of the terms of service?

Or the reseller's customers, that are knowingly buying a potentially fake service?

Or Alibaba, also using resellers to break terms of service with the aim of attacking Anthropic's business?

INAL but I think Anthropic would be able to argue an "unclean hands defence" to prove they are not defrauding anyone:

https://en.wikipedia.org/wiki/Clean_hands_doctrine

In short, you can't knowingly break a contract and then complain that someone else is not treating you fairly with regard to that same contract.