The main story is what isn't being talked about. Chinese labs exfiltrated trillions of tokens of high-quality output from Anthropic and OpenAI, through proxies and heavily discounted token resellers, which they distilled and used for training data for their own models.

Instead of spending 12-18 months building their own robust harnesses and painstakingly creating quality training data (which is what Anthropic and OpenAI did), they distilled Anthropic's models to bypass the hardest parts of development. Chinese labs compressed 18 months of intensive research and development into just 6 months, and are now head-to-head with their American counterparts.

Anthropic tried to complain about this unauthorized "token theft", but they burned too much public goodwill with BS safety restrictions and users don't care. The US government is too busy fighting a war to help. Chinese labs are offering highly capable, cheap, open-weight models; exactly what users want. The community is happy to overlook any questionable methods Chinese labs used to build them.

The cope is incredible. There's people in this thread in denial that Moonshot AI is trained on exfiltrated Anthropic's model output, even when shown substantial evidence this has been happening since Kimi 2.X

Chinese labs were even paying an absurd $0.01 per Opus tool call trace, to get the quantity of training data needed.

Kimi K3 has reached the point of RSI, and no longer needs synthetic data generated by Anthropic/OpenAI models. K3 is now capable enough to generate, iterate, and improve its own training data recursively. The data exfiltration is complete.

We witnessed the most extensive industrial espionage campaign, probably ever, and nobody in the industry cares at all that it happened.