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Sacks drops an absolute bar, criticizing Anthropic for using “distillation” as a door to regulatory capture “If stopping distillation was its primary objective, Anthropic would push to stop Chinese access to American models, not American access to Chinese models.” - David Sacks

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🚨David Sacks: There is no White House decision to ban open source models. Trump is listening to a chorus of voices — and Sacks says it would be a tragic mistake to take action against the open source ecosystem. His argument: Anthropic is the fastest growing tech company at scale in history. $10B ARR at the start of the year. $70B now. This is not a company that needs government protection. And yet they've spent enormous energy trying to panic Washington into banning American developers from using Chinese open source models. If distillation by Chinese companies was really their primary concern — a genuine national security threat — they would push to ban Chinese access to American models. Instead they're pushing to ban American access to Chinese models. Because this helps Anthropic's competitive position. Sacks: "That's the way you know the whole distillation thing is fake." He went further. If distillation is happening at industrial scale, it's obvious to see. Anthropic has 90% gross margins. Why aren't they stopping it at the source? Answer: because KYC'ing their customers would slow their growth. So instead of fixing their own house, they're asking the government to kneecap their competitors. "The question should be on Anthropic to explain why it's doing such a bad job — not on the whole American open source ecosystem to be punished for Anthropic's failure." Trump's AI Czar on The All-In Podcast.

KanekoaTheGreat

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