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Anthropic has accused Chinese companies such as Moonshot AI, DeepSeek, and MiniMax of the practice

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Image accompanies the article at CNBC Technology. No description was extracted from the source.

In the midst of this, the U.S.'s National Security Agency, Cybersecurity and Infrastructure Security Agency, and Federal Bureau of Investigation released an official cyber security advisory warning on the topic on Tuesday.

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Summary

At a time when some Silicon Valley giants and national security experts are calling for action against Chinese companies engaged in model distillation, Garry Tan, chief executive of famed startup accelerator Y Combinator, is less concerned. "I would do nothing" about distillation, he told CNBC at Y Combinator's annual Demo Day. Distillation is the process of using the outputs of a more capable AI model to train a smaller or less capable one, sometimes illicitly. Critics have pushed back on Anthropic and OpenAI's distillation complaints because much of the data used to train these AI models may be covered under copyright law, which Tan highlighted.

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