We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
US considers sanctions against Moonshot over model distillation
Parker Conrad claims investors seek bans to protect Anthropic.
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Policy Risk
Potential restrictions could hit US access to Chinese models
Any Entity List moves would limit American users and businesses from tapping flagged models, creating immediate friction for developers already experimenting with open-weight releases from abroad.
Open Question
Evidence gap leaves room for competing interpretations
No official determination or data has been released confirming distillation on Kimi K3, so the debate stays open on whether the warnings reflect verified incidents or broader competitive positioning.
Sentiment
Positive users praise Scott Bessent for defending US IP laws against Chinese AI theft via distillation, while negative users insult the official or call the sanctions harmful to American AI and free speech.
Pos
10.6%
Neg
89.4%
104 comments with sentiment.
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wow am i understanding this correctly? 1. put chinese models on the entity list. 2. force american companies to buy more expensive ai from american labs. 3. watch the rest of the world use cheaper models with equal or better intelligence. 4. discover that distillation did not magically stop because washington published a list. 5. make american businesses less competitive globally while raising prices for ordinary americans. 6. meanwhile none of this stops chinese ai labs from becoming better & better. congratulations you protected domestic ai companies by taxing the competitiveness of the entire country. what a colossal mess. someone please add order to this madness.
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
A set of politically-connected growth investors are mobilizing to protect their bag in Anthropic. They will secure bans on chinese open source models, when no crime has been proven--or even alleged--and without any act of congress. All to protect a set of wealthy investors.
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
There's no legal precedent that model outputs are IP. I'd argue it also doesn't stand up conceptually. The frontier labs are under no obligation to have their APIs be available to these customers, and can protect model generations in other ways if they want to.
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
Suddenly we have to protect the AI companies— who commit 24/7 IP theft and have built their businesses on IP theft— from IP theft? Lmao
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
„sanctions and Entity List designations will be on the table.“ Yeah, bans on Chinese open source are coming. Pretty sure at this point. If Scott Bessent, who pushed through similar measures against Anthropic, raises this as a possibility, we know where things are headed.
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
I have no inside information, but every sign so far is that there is growing tension about open weights models between the US & China: the US announcing that they reserve the right to act against distilled models, then saying Kimi distills. Contradictory reports from China, etc.
@signulll Not to mention that American labs distill too. They just launder it through data providers and openrouter data.
wow am i understanding this correctly? 1. put chinese models on the entity list. 2. force american companies to buy more expensive ai from american labs. 3. watch the rest of the world use cheaper models with equal or better intelligence. 4. discover that distillation did not magically stop because washington published a list. 5. make american businesses less competitive globally while raising prices for ordinary americans. 6. meanwhile none of this stops chinese ai labs from becoming better & better. congratulations you protected domestic ai companies by taxing the competitiveness of the entire country. what a colossal mess. someone please add order to this madness.
Anthropic isn’t some proud American institution. They’re a tech company that has existed for a couple years. They are run by, for the most part, fringe socialist lunatics. The government doesn’t need to announce DEFCON 1 because they suffered a setback.
@SecScottBessent You are being misled. Kimi 3 was released only 1 month after Fable. There is no chance that they distilled and then trained that model in that time.
Yup
wow am i understanding this correctly? 1. put chinese models on the entity list. 2. force american companies to buy more expensive ai from american labs. 3. watch the rest of the world use cheaper models with equal or better intelligence. 4. discover that distillation did not magically stop because washington published a list. 5. make american businesses less competitive globally while raising prices for ordinary americans. 6. meanwhile none of this stops chinese ai labs from becoming better & better. congratulations you protected domestic ai companies by taxing the competitiveness of the entire country. what a colossal mess. someone please add order to this madness.
We’re about 10 years away from a massive Supreme Court decision that will finally determine whether or not we need to unwind the past decade of everyone in AI stealing “IP” from everyone else
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
@SecScottBessent @Moh1tAgarwal You are making a serious mistake that will not be recovered from
@SecScottBessent @AndrewCurran_ Let’s talk about where anthropic and OpenAI got its training data then
@SecScottBessent The timeline makes it impossible for K3 to have been distilled from Fable. It's a poorly thought out lie.
@nic_carter Post-71 USD system ensures we will keep losing like this until we "open source" the USD system: Multi-currency commodity pricing, with net gold settlement, with gold floating in all currencies.
@SecScottBessent How about we openly steal their shit too? Problem solved. Open season.
@SecScottBessent Are you saying Chinese open source AI companies are like digital Robinhood that takes hoarded data from Anthropics and OpenAI that Dario and Sam Altman had gained thru IP theft and distribute them for free to the rest of the world?
And then.
We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.
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@SecScottBessent @AwakenedOutlaw Hi. Anthropic distilled all books and had to pay massive fines. Stop with the damned narratives of hogwash.