September 29th.Nvidia(Nvidia) Chief Executive OfficerJen-Hsun Huang(Jensen Huang) Model distillation — that is, using the output of other models to train new models is a competitive market behaviour; however, the White House characterizes the practice as theft。
1AI noted that in July, United States Treasury Secretary Scott Bessent had referred to distillation as “theft” and threatened to impose sanctions on overseas companies that used this technique to extract technical capabilities from the United States self-study model。
But on Monday, local time, Huang In-hoon, a guest of the American Consumer News and Business Channel (CNBC), Squawk Box, responded when asked whether model distillation was a “robbery”, “It is called competition. That's called communication."
And he said, "You can do whatever you want to do with other products." He added that there were companies that had dissected the products of the British to almost the bone skeletons in order to understand how they worked。
“Of course I don't want them to. I certainly hope that no one will study and learn from our products, so that we can move on. But to be honest, competition makes everything better."
Wong In-hoon said, “If you don't like this, you don't want people to use your products, you just have to know your clients and shut down the corresponding services.”
EARLIER THIS MONTH, THE U.S. CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACCUSED CHINA'S AI ENTERPRISE OF CONDUCTING AN “INDUSTRIAL-SCALE KNOWLEDGE DISTILLATION OPERATION” THAT IT CONSIDERED TO BE A VIOLATION OF THE US ENTERPRISE'S USER SERVICE AGREEMENT。
Anthropic also stated earlier this month that it had discovered “illegal distillation” in two businesses, Ali Baba and DeepSeek, which had developed a Qwen series of models。
China has refuted these allegations。