AI Distillation

garry tan open weight ai labs distill frontier models a front door frame with panel swung open

Y Combinator’s Garry Tan Wants US Open-Weight AI Labs to ‘Distill’ Frontier Models, Too

On 10 and 11 September 2026 Y Combinator chief executive Garry Tan told CNBC and TechCrunch that he would “do nothing” about Chinese labs distilling American frontier models, and that smaller American open-weight labs should be free to distill American frontier labs through “an American distillation regime”. We read both interviews, the terms of service of OpenAI, Anthropic and Google, the July open-weights letter that Y Combinator signed, Dario Amodei’s reply to it, Anthropic’s February and September reports, the CISA advisory and Elon Musk’s April testimony, and counted what the front door he describes actually looks like.

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ai distillation advisory chinese companies american models a bottle with a wide body and a long narrow neck

AI Distillation: Essential Facts on the Risky US Warning

AI distillation is the subject of a joint advisory published on 8 September 2026 by the National Security Agency, the Cybersecurity and Infrastructure Security Agency and the Federal Bureau of Investigation. Catalogued as AA26-251A, it names six Chinese companies — DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI — and accuses them of extracting “billions […]

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