I think the lowest IQ response you can have to something like this is "hurr durr OpenAI stole the internet, now they're complaining?"
It's an entirely true irony. There is nothing to debate. It's very easy to just reduce down any news about distillation attacks as "Wow look, the master thieves are mad that someone is thieving from them". It doesn't really take any cognitive effort to post that, like a meme, a knee-jerk social media commentary reaction that gets the likes and the retweets and the laughing emoji.
But take just a few seconds longer. The point is that frontier labs keep doing all the hard work, spending all the money, time, and resources (the thing that so many are quick to call the "VC money pit") and then along come Chinese labs who distill/piggyback off of that, put out cheaper variants, and then people proceed to talk about how much better the Chinese models are.
"I don't care, I just want cheaper models" is actually a totally fine response, and I don't blame you. Local AI is getting cooler and cooler by the day and what it can do is getting impressive, and anything that further democratizes AI access among all the people in the world is a good thing in my book.
You don't need to cheer on frontier labs. You don't need to be a fan of Western AI in the slightest. But before you start cheering on and idolizing Chinese models, make sure you understand where their efficiency actually comes from, because it's not magic and it doesn't just materialize out of thin air.
AI is as geopolitical as it gets. The last time the headlines were "DeepSeek puts out model that beats OpenAI & Anthropic for just a few million", it rocked the Western economy to the core. It was also completely false but the truth about it never quite got the same level of sensationalism.
Do you really think that other countries are not watching the US and how hedged they are on AI? That they weren't paying attention to what happened to the stock market during that DeepSeek event? Why is it, do you think, that Chinese labs flood the market with lots and lots of high quality models...for completely free? What exactly do you think is the benefit for them? Yeah.
Start exploring that, and all of a sudden, it's not black and white and it's not as simple as "Merica good, China bad".
I'm not making any opinion here about the morality of OpenAI or Anthropic or Google or anybody who trained on the internet. I just implore you to think a little bit harder about it.
Geopolitical struggle intensified : OpenAI says individuals linked to Kimi developer Moonshot AI were behind a core part of a campaign to extract its models’ hidden reasoning.
Across the broader campaign, OpenAI recorded 16,000 extraction attempts from over 4,000 users in two days. Further investigation identified related activity across more than 15,000 users.
Operators tried moving encrypted reasoning between conversations and prompting a model to reveal its contents.
Hidden reasoning could provide valuable training material for competing models.