What's interesting/funny is that the American LLM companies took from the public domain and copyrighted work to close all that content into a box they charge for.
Then the Chinese took the distilled stuff out from that box and released it into the world for everyone.
So, OpenAI and Anthropic say the Chinese models are only as good because they distill their models. How true is that. I am sure it adds something. But is it more like a marginal 1% improvement or something really significant?
Doctorow keeps saying it of all the tech companies: every pirate wants to be an admiral.
...and then the American companies cried Foul! Unfair play! You've got this wrong, see, it was us who were supposed to profit off of the public, not the other way around!
How do Chinese companies distill the models?
This is part of why I can't feel bad for them. The training data is mostly pirated. Whining about Chinese labs training off American frontier models is "waaah you pirated my pirated stuff!"
The tech itself is amazing and fascinating and cool, but the industry is a mass piracy operation.
The American LLMs have been equally distilled from Chinese ones. Not least because the people whose creativity in collecting training data barely extends to pirating Annas Archive probably lack in great Chinese datasets.
Try it yourself: https://imgur.com/ZfxYmaq
You can't be blind to training costs. And you can't be blind to Meta dabbling in the openish strategy (Llama) before the Chinese labs did.
Whats even funnier is the attempt to restrict the hardware capabilities of Chinese models inevitably helped them (Because we know they're just as smart, if not smarter, than the staff in America) create smaller and leaner but just as capable models. That's why we now have upper-consumer models fitting on 24GB that can build, manage medium sized git repos. I've yet to find a git repo I can't throw at the Qwen3.6 35B and get it built and running.
So it's an endless amusement watching american capitalism do it's bloated oversized dance then get trounced by smaller, leaner activity. It's a pretty broad metaphor that is clearly poking at every american seam/.
It’s poetic.
It doesn't make me happy to say it, but the American LLM companies were first. Capital in the rest of the world is way more conservative, and I can't imagine the mega-investments OpenAI and Anthropic managed to secure happening anywhere else without existing proof that "thing is profitable".
Try instructing Codex to (say) fine-tune a language model based on a collection of books you've got saved. You will find yourself admonished, repeatedly and at length, not to utilize copyrighted materials to train language models, by an AI who owes its entire existence to that very act.
These models might be smart but they're not close to being able to savor irony.