This isn't very true.
A big part of the problem is that the labs use the term distillation, which is a general post-training technique, in lieu of a specific issue of jailbreaking the API. (1)
There is a second debate of *how* impactful distillation is, but it is definitely helpful. (2) This is entirely based on how the Chinese labs are jailbreaking the APIs to get reasoning traces out, which help bootstrap reasoning behaviors in new domains.
There's a third point (3) which I take an excerpt from my recent piece, where the labs need to be more transparent why especially point (2) is true. From the third piece:
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On the point of distillation, my hypothesis is that API builders don’t have an easy time preventing hacks or jailbreaking because it’s a deeply grounded property of reasoning models to want to output the reasoning traces, and it would make the model far less intelligent to fully patch the behavior. This is based on a few assumptions:
a) Chinese labs are not just showing up as customers to Anthropic’s API and paying for tokens in the intended input-output form. If the Chinese labs are paying for intended use behaviors, despite being banned by the terms and conditions, I don’t have a lot of sympathy for the frontier labs manifesting policy actions against this.
b) Reasoning traces are disproportionately effective at seeding behavior in downstream models.
c) Leading labs work very hard to patch the pipeline of these jailbreaks.
So, my logical conclusion is that the model companies would have to weaken their economic position to fully protect their IP. If this is the case, Anthropic would get a lot more sympathy from the AI research community by being transparent. It would also be far easier to have informed policy discussions, and not rely on me proposing Occam’s razor explanations for what the API jailbreaking looks like.
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There's no need to misinform people because the labs use a bad term. The labs use this term partially to make the discourse confusing, as you're doing.
(1) See https://www.interconnects.ai/p/the-distillation-panic
(2) See: https://www.interconnects.ai/p/how-much-does-distillation-really
(3) See: https://www.interconnects.ai/p/claude-fable-5-and-new-ai-safety