US labs distill from the same APIs too, just via data vendors

peterjliu · x · 2026-10-17

peterjliu points out that while Chinese labs may distill directly from US lab APIs, US labs do the same indirectly: data vendors synthetically generate training data from the same frontier APIs and sell it back to US labs. His diagram contrasts direct distillation (prompts → API → training pairs) with indirect cross-distillation via vendors — meaning the whole industry is training on the same model outputs.

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