"Anthropic accused Chinese firms of 'industrial-scale distillation attacks' on its AI models."
"Distillation involves training less capable models on more advanced ones’ output, and can be used illicitly to acquire powerful capabilities cheaply. The AI startup accused China’s DeepSeek, MiniMax, and Moonshot of generating 'over 16 million exchanges with Claude through approximately 24,000 fraudulent accounts,'"
https://www.semafor.com/article/02/24/2026/anthropic-accuses...
After reading their posts and watching interviews with Dario it's abundantly clear that they view Chinese-lab distillation of US frontier models as a threat to US national security. You can argue with them about whether that is true, but not whether distillation is real.
It's definitely real, in the sense that it's a real violation of ToS. It could perhaps be used to guide a few narrow capabilities in very specific domains, given a model that's already most of the way there. But no, it's nowhere near the same as "stealing" a model outright, nor does it replace basic innovation in AI. And it's indistinguishable from practices that have long been common in the industry as a matter of fact, regardless of any ToS requirements.