Chinese AI labs are conducting industrial-scale theft of American AI capabilities through fraudulent distillation campaigns. These operations undermine export controls designed to preserve America's competitive advantage — without coordinated action across industry and government, foreign adversaries will continue free-riding on U.S. research investments to accelerate autocratic AI that threatens national security.
Anthropic scraped copyrighted materials at massive scale to build models it charges for without compensating creators, then settled multi-billion dollar lawsuits for this theft. Now the company hypocritically complains when others pay for legitimate API access to create free models anyone can use. In a blatant move of Big Tech hypocrisy, this is a transparent attempt at regulatory capture that seeks to make illegal the very practices Anthropic used to reach market dominance.
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