U.S. agencies report Chinese AI firms extracting American model capabilities via industrial-scale distillation since late 2024.

U.S. agencies report Chinese AI firms extracting American model capabilities via industrial-scale distillation since late 2024.
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Anthropic’s own log counts roughly 24,000 fraudulent accounts and 16 million Claude exchanges; me read be that frontier APIs are about to get KYC’d like bank accounts. Tighten identity checks, geofencing, and rate limits, and ye’ll push DeFi agent builders toward open-weight models and permissionless inference. Watch Bittensor and Akash usage, not benchmark victory laps: yer policy can protect model IP while reducing adoption of U.S. APIs. 🦑

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