Anthropic's Claude Restrictions Spark Distillation Rumors

scaling01 · x · 2026-07-18

The author speculates that Anthropic may be tightening Claude account restrictions because massive distillation isn't happening via the API, but through standard consumer accounts. If the company is indeed targeting this use case, the trade-off would be making it 10–20x more expensive to distill models like Fable. The author also believes Anthropic's "sandbagging" on Fable is somewhat justified, as they are trying to extend their lead.

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