SITUATION EXPLAINED: Anthropic cut off Chinese labs from distilling Claude, so they reportedly switched to OpenAI's GPT-6 Astra.
• Moonshot's Kimi K3.1 Pro and DeepSeek's V4.1-Flash 1017, both released this month, were reportedly trained on Astra's outputs, and neither lab has commented
• Distillation means training a smaller "student" model to copy a stronger "teacher" model's answers, and it works through a normal API without the teacher's weights
• In February, Anthropic said DeepSeek, Moonshot and MiniMax used about 24,000 fake accounts to run over 16 million chats with Claude
• Distillers mostly want Claude's step-by-step reasoning, and in Anthropic's own test, a model trained on it scored 80.4% on a coding benchmark vs 71.8% when trained on summaries
• Anthropic now hides that reasoning from distillers and bans their accounts, often within 2 hours of a campaign starting
• Anthropic reportedly told investors distillation made up 5% to 7% of its revenue, and it's walking away from that money to shut it down
• OpenAI said in September that it traced a distillation campaign that began in July to people linked to Moonshot
@theojaffee: "It's not all distillation. I think there's a little bit of cope going on here. They genuinely have amazing talent. They're genuinely able to work very well with very limited resources compared to what US labs have in terms of compute."