"The US wants China to stop distilling its AI models, stop smuggling its chips, and stop fine-tuning its open-source models for military use." Sure - you tell'em USA!...as if China is going to stop.

> Distillation is the technique at the centre of the dispute. It does not require stealing model weights or breaking into servers. A distiller feeds thousands or millions of carefully constructed queries to a frontier AI model, collects the responses, and uses those responses to train a cheaper rival model that approximates the original’s capabilities at a fraction of the cost.

Just so I'm sure I understand this correctly... The USA is ticked at China for training new LLMs on pre-existing content/data held by private corporations, which they freely exposed to the internet. But not ticked at those corporations for having trained LLMs in the first place on the content created by private citizens?