Vector
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Vector
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The AI revolution, in plain English
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Nvidia just built a 37-company alliance to tell Washington open AI models are a cyber-defense asset.
@OpenAI , @AnthropicAI , and @Google three firms that sell the closed frontier—aren't on the list.
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DAVID SACKS: “Here's the thing that's so hypocritical … OpenAI's argument is we're not stealing anything. We're taking the output of the NYT and we are deriving our own model weights. That's exactly what these Chinese models are doing.”
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From Silicon Valley to DC, the tech world is suddenly obsessed with one concept in AI: Distillation cnbc.com/2026/07/25/hat…
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Lots of very smart people are appropriately concerned about regulatory capture from top two AI players. And there are many scary press releases but no real due process.
If OpenAI violated Hugging Face in a way that “demands” new regulation; let’s start with a formal criminal investigation. With a proper third party investigation. And sincere liability.
It can’t be “so super serious” and only analyzed by the defendant. Thats ludicrous.
And why would we write new regulation if the crime we are supposedly protecting against isn’t even prosecuted?
This stuff makes no sense.
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There's no legal precedent that model outputs are IP. I'd argue it also doesn't stand up conceptually.
The frontier labs are under no obligation to have their APIs be available to these customers, and can protect model generations in other ways if they want to.
Treasury Secretary Scott Bessent@SecScottBessent
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
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We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
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This is more than a heist of invaluable American Intellectual Property. It is an assault on every economy that prizes the entrepreneur, rewards private capital, and relies on fair and honest competition.
Lying, cheating, and stealing is not innovation or “win-win”. It’s corrosive to productive economic activity and to the healthy economic development of nations.
Director Michael Kratsios@mkratsios47
We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model. To do this they developed a sophisticated internal platform to conduct large scale distillation against U.S. models, allowing them to quickly switch between multiple methods of access to avoid detection. Moonshot AI has also acquired GB300-equipped servers and has accessed GB300s in Thailand, likely to train its AI models. The United States strongly supports the free and fair development of AI, including a thriving competitive ecosystem that spans frontier models, specialized systems, open-source frameworks, and open-weight models. Legitimate AI distillation used to create smaller, more efficient models plays a vital role in this open innovation ecosystem. However, large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.
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We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model.
To do this they developed a sophisticated internal platform to conduct large scale distillation against U.S. models, allowing them to quickly switch between multiple methods of access to avoid detection. Moonshot AI has also acquired GB300-equipped servers and has accessed GB300s in Thailand, likely to train its AI models.
The United States strongly supports the free and fair development of AI, including a thriving competitive ecosystem that spans frontier models, specialized systems, open-source frameworks, and open-weight models. Legitimate AI distillation used to create smaller, more efficient models plays a vital role in this open innovation ecosystem. However, large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.
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