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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 says Anthropic could stop Chinese distillation if they wanted to, but they won't because it slows growth "The way that you know that this whole distillation thing is fake, is because if stopping distillation was their primary objective, Anthropic would push to ban Chinese access to American models, not American access to Chinese models." "They’re the ones in the best position to block it. If industrial scale distillation is a national security threat, they’re the ones who need to stop it, because that is the place where distillation occurs. You have to stop it at the source." "They know that if they KYC their customers, it’ll slow their growth. So instead, what they’re saying is, “Hey, ban our competitors.” If they really think it’s that big a threat, they should use a few points of their 90% gross margins to do that." "It seems to me that this debate is all backwards. 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."

David Sacks says Anthropic could stop Chinese distillation if they wanted to, but they won't because it slows growth "The way that you know that this whole distillation thing is fake, is because if stopping distillation was their primary objective, Anthropic would push to ban Chinese access to American models, not American access to Chinese models." "They’re the ones in the best position to block it. If industrial scale distillation is a national security threat, they’re the ones who need to stop it, because that is the place where distillation occurs. You have to stop it at the source." "They know that if they KYC their customers, it’ll slow their growth. So instead, what they’re saying is, “Hey, ban our competitors.” If they really think it’s that big a threat, they should use a few points of their 90% gross margins to do that." "It seems to me that this debate is all backwards. 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."

dnap

190,838 views • 10 days ago

🚨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.

🚨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

48,164 views • 10 days ago

Trump advisor David Sacks calls out Anthropic who “go out of their way to take that shot at open source models” in effort to weaken AI rivals. “I think where it’s all leading to is an effort to ban open source models.” 🎥 David Sacks / The All-In Podcast

Trump advisor David Sacks calls out Anthropic who “go out of their way to take that shot at open source models” in effort to weaken AI rivals. “I think where it’s all leading to is an effort to ban open source models.” 🎥 David Sacks / The All-In Podcast

Oli London

50,889 views • 1 month ago

Asked if China's DeepSeek stole American IP, AI Czar David Sacks says it looks like a technique called distillation was used where a student model can "suck the knowledge" out of the parent model and there is evidence that DeepSeek distilled knowledge from OpenAI's models, which is leading to efforts to develop techniques to prevent future copycats

Asked if China's DeepSeek stole American IP, AI Czar David Sacks says it looks like a technique called distillation was used where a student model can "suck the knowledge" out of the parent model and there is evidence that DeepSeek distilled knowledge from OpenAI's models, which is leading to efforts to develop techniques to prevent future copycats

Tsarathustra

710,764 views • 1 year ago

Trump AI czar David Sacks said Anthropic made the "right decision" to restrict access to Mythos due to national security concerns. "I would not want the hackers to have access to it before the defenders," he told our Dasha Burns on #TheConversation. 🎧

Trump AI czar David Sacks said Anthropic made the "right decision" to restrict access to Mythos due to national security concerns. "I would not want the hackers to have access to it before the defenders," he told our Dasha Burns on #TheConversation. 🎧

POLITICO

22,642 views • 3 months ago

What happens to Chinese AI once American companies stop releasing frontier models internationally? Gavin Baker says that China's made a "terrible mistake" by relying on its own chips and distilling American models: "It feels like the administration has been willing to let them buy H200s or B30s. And I think [the Chinese] have this crazy belief that, 'Oh, our own internal chips are good enough.' They're not." "And what's making them think that is that Chinese labs are very, very good at distillation...we've all seen those iPhone farms in China. You know they've got the same thing for distillation. They've got 100,000 endpoints distilling these models across every API available." "They've gotten really, really good at that. But all that goes away if people stop releasing these models at the frontier. And I think Mythos is a sign of things to come there."

What happens to Chinese AI once American companies stop releasing frontier models internationally? Gavin Baker says that China's made a "terrible mistake" by relying on its own chips and distilling American models: "It feels like the administration has been willing to let them buy H200s or B30s. And I think [the Chinese] have this crazy belief that, 'Oh, our own internal chips are good enough.' They're not." "And what's making them think that is that Chinese labs are very, very good at distillation...we've all seen those iPhone farms in China. You know they've got the same thing for distillation. They've got 100,000 endpoints distilling these models across every API available." "They've gotten really, really good at that. But all that goes away if people stop releasing these models at the frontier. And I think Mythos is a sign of things to come there."

TBPN

122,701 views • 1 month ago

Anthropic said it will ‘abruptly disable’ its most advanced AI models for all users after the US government ordered it to suspend access to the models for foreign nationals, citing national security concerns

Anthropic said it will ‘abruptly disable’ its most advanced AI models for all users after the US government ordered it to suspend access to the models for foreign nationals, citing national security concerns

Reuters

87,921 views • 1 month ago

JUST IN: Anthropic confirms China is stealing its AI models, citing "multiple rounds of evidence." Anthropic's Frontier Red Team lead says Chinese research groups are distilling from US models and calls it "theft of American IP." "If you're taking the best of American innovation and throwing it back to attack America, that's really concerning."

JUST IN: Anthropic confirms China is stealing its AI models, citing "multiple rounds of evidence." Anthropic's Frontier Red Team lead says Chinese research groups are distilling from US models and calls it "theft of American IP." "If you're taking the best of American innovation and throwing it back to attack America, that's really concerning."

Coin Bureau

111,768 views • 11 days ago

Anthropic said that the US Commerce Department has lifted export controls on its Fable and Mythos AI models, less than three weeks after the company was ordered to suspend access to its most advanced AI models over national security risks

Anthropic said that the US Commerce Department has lifted export controls on its Fable and Mythos AI models, less than three weeks after the company was ordered to suspend access to its most advanced AI models over national security risks

Reuters

55,523 views • 1 month ago

David Sacks on How Anthropic is Ironically Running Surveillance on Their Latest Models “This is the company that said that it was against government surveillance. They are now retaining for 30 days every prompt and every output you send to one of these Mythos class models.”

David Sacks on How Anthropic is Ironically Running Surveillance on Their Latest Models “This is the company that said that it was against government surveillance. They are now retaining for 30 days every prompt and every output you send to one of these Mythos class models.”

Chief Nerd

277,441 views • 1 month ago

The CCP infects true capitalism by using companies as geopolitical pawns to advance their agenda: they use access to the Chinese market as bait to get American CEOs to act like circus monkeys. That’s the real Chinese virus we need to fight.

The CCP infects true capitalism by using companies as geopolitical pawns to advance their agenda: they use access to the Chinese market as bait to get American CEOs to act like circus monkeys. That’s the real Chinese virus we need to fight.

Vivek Ramaswamy

104,300 views • 3 years ago

FOR THE FIRST TIME, THE US GOVERNMENT PULLED A PUBLICLY DEPLOYED AI MODEL OFFLINE. THE MARKET SHOULD PAY ATTENTION. 🇺🇸 On June 12, the Commerce Department ordered Anthropic to block access to its newest models, Fable 5 and Mythos 5, for any foreign national. Anthropic had to disable them for everyone to comply. The stated reason was a security concern. Anthropic disputes it, calling the flagged technique a narrow jailbreak available in other models too. Whatever the truth, here's the macro takeaway: Frontier AI now sits close enough to national security that a government can switch it off overnight. If you don't control your own models and compute, you're one directive away from losing access. That's the case for open and local models, in one headline.

FOR THE FIRST TIME, THE US GOVERNMENT PULLED A PUBLICLY DEPLOYED AI MODEL OFFLINE. THE MARKET SHOULD PAY ATTENTION. 🇺🇸 On June 12, the Commerce Department ordered Anthropic to block access to its newest models, Fable 5 and Mythos 5, for any foreign national. Anthropic had to disable them for everyone to comply. The stated reason was a security concern. Anthropic disputes it, calling the flagged technique a narrow jailbreak available in other models too. Whatever the truth, here's the macro takeaway: Frontier AI now sits close enough to national security that a government can switch it off overnight. If you don't control your own models and compute, you're one directive away from losing access. That's the case for open and local models, in one headline.

Merlijn The Trader

47,996 views • 1 month ago

David Sacks: Anthropic Is Trying to Crush Open Source AI and the American Developers Who Use It David Sacks: “I know people don't have a lot of sympathy for Chinese companies, that's fine. I'm not defending Chinese companies. I'm defending American developers who need to be able to use everything in the public domain. And let me give you an example. Cursor rolled out its new product, Composer 2. They were able to post-train that model using Kimi K2.5 on their own proprietary coding data. They started with a Chinese open source model, and then they used their own data, and they came up with a new derivative product. This is the way that open source works. You take things that are in the public domain, you fork them, you make them your own. And by the way, once it's in the public domain, it's not a Chinese model anymore. No data is going back to China, nothing's going back to China. An American company has taken open source contributions in the public domain, made it their own, and then developed their own model. And if you say that American companies can't do that, or that somehow it's tainted with IP theft, you are basically going to put a dagger through the heart of the entire American open source ecosystem. And that is exactly what Anthropic wants, because they do not want to have the competition.”

David Sacks: Anthropic Is Trying to Crush Open Source AI and the American Developers Who Use It David Sacks: “I know people don't have a lot of sympathy for Chinese companies, that's fine. I'm not defending Chinese companies. I'm defending American developers who need to be able to use everything in the public domain. And let me give you an example. Cursor rolled out its new product, Composer 2. They were able to post-train that model using Kimi K2.5 on their own proprietary coding data. They started with a Chinese open source model, and then they used their own data, and they came up with a new derivative product. This is the way that open source works. You take things that are in the public domain, you fork them, you make them your own. And by the way, once it's in the public domain, it's not a Chinese model anymore. No data is going back to China, nothing's going back to China. An American company has taken open source contributions in the public domain, made it their own, and then developed their own model. And if you say that American companies can't do that, or that somehow it's tainted with IP theft, you are basically going to put a dagger through the heart of the entire American open source ecosystem. And that is exactly what Anthropic wants, because they do not want to have the competition.”

The All-In Podcast

276,501 views • 10 days ago

Trump AI adviser David Sacks: Anthropic tried to “strong-arm the government” in its dispute with the Pentagon. “I just don't think it was a very realistic position for them to take,” he told our Dasha Burns on #TheConversation. 🎧

Trump AI adviser David Sacks: Anthropic tried to “strong-arm the government” in its dispute with the Pentagon. “I just don't think it was a very realistic position for them to take,” he told our Dasha Burns on #TheConversation. 🎧

POLITICO

16,715 views • 3 months ago

David Sacks: "Play stupid games, win stupid prizes" Open borders created the DSA base Sacks breaks down how the DSA takeover was fueled by open borders, mass unassimilated migration, and downwardly mobile progressive organizers. DSA members aren’t trying to reform the Democratic Party. They’re using it as a vehicle. David Sacks “They’re not just anti-American — they’re post-American. They have no respect for our constitutional order or free enterprise system. They want to introduce something much different… and it’s going to look a lot like the countries these migrants are coming from.” Can the establishment Democrats still stop this?

David Sacks: "Play stupid games, win stupid prizes" Open borders created the DSA base Sacks breaks down how the DSA takeover was fueled by open borders, mass unassimilated migration, and downwardly mobile progressive organizers. DSA members aren’t trying to reform the Democratic Party. They’re using it as a vehicle. David Sacks “They’re not just anti-American — they’re post-American. They have no respect for our constitutional order or free enterprise system. They want to introduce something much different… and it’s going to look a lot like the countries these migrants are coming from.” Can the establishment Democrats still stop this?

jay plemons

35,163 views • 1 month ago

Palantir CTO Shyam Sankar says Chinese open source models pose a "threat to American Prosperity": "These Chinese open source models are really the result of distillation attacks." "Most of this is just stolen American IP from frontier labs, and I think the frontier labs should do more to protect that IP, and that's in their own economic interest." "The gravest threat to us is not homicide, it's suicide." "It's an inability to turn these tokens into economic value and generate American prosperity for it." "You see that with the proposed moratorium in New York on data centers. Turning our back on AI would be as consequential a mistake as turning our back on the atom in the '70s." "It's just the beginning, but we're starting to see a burgeoning US open model ecosystem forming." "NVIDIA's Nemotron models are very good." "I think you're going to see in the next month a slate of announcements of other American companies, non-frontier labs, neo labs, who are putting out open weight models that companies are going to be able to cheaply fine-tune and capture their own alpha in weights they control." Via Bloomberg

Palantir CTO Shyam Sankar says Chinese open source models pose a "threat to American Prosperity": "These Chinese open source models are really the result of distillation attacks." "Most of this is just stolen American IP from frontier labs, and I think the frontier labs should do more to protect that IP, and that's in their own economic interest." "The gravest threat to us is not homicide, it's suicide." "It's an inability to turn these tokens into economic value and generate American prosperity for it." "You see that with the proposed moratorium in New York on data centers. Turning our back on AI would be as consequential a mistake as turning our back on the atom in the '70s." "It's just the beginning, but we're starting to see a burgeoning US open model ecosystem forming." "NVIDIA's Nemotron models are very good." "I think you're going to see in the next month a slate of announcements of other American companies, non-frontier labs, neo labs, who are putting out open weight models that companies are going to be able to cheaply fine-tune and capture their own alpha in weights they control." Via Bloomberg

Jawwwn

179,554 views • 16 days ago

David Sacks laid out the cleanest theory about why Anthropic keeps calling for government regulation of AI. The answer has nothing to do with safety and everything to do with market structure. Anthropic spent months writing blog posts warning that AI was dangerous. Dario gave interviews about existential risk. He published a piece calling for an FAA-style agency to approve all AI models before release. He primed government officials to treat frontier AI as a threat requiring oversight. Then one of Anthropic's own most trusted partners reported a credible jailbreak from Fable 5. And the government did exactly what Dario had spent months conditioning them to do. They rolled it back. Sacks called it on the All-In podcast. Dario got exactly what he wanted. The FAA for AI is not a safety mechanism. It is a moat. A government approval process for new model releases does not hurt Anthropic. They already have the models. It hurts every competitor who does not. It hurts open source models that cannot be regulated because there is no company to regulate. It hurts the Chinese labs only insofar as they care about the American market at all. The only companies that benefit from a labyrinthine government approval process are the ones already at the frontier who can afford to wait out the review cycle. That is Anthropic. That is OpenAI. Nobody else. The proof is in what they did not do. Chimath pointed it out directly. If you are genuinely worried about misuse, you implement know-your-customer verification. You make people identify themselves before accessing the most powerful models. Anthropic could have done that tomorrow. They did not. They do not want KYC. KYC is transparent. KYC can be audited. KYC gives users due process. What they built instead was an invisible surveillance system that profiles you, degrades your access without telling you, and asks the government to make sure no one else can offer you an alternative. If you thought this was safety then you are wrong. That is capture. Sacks said the response should be simple. Fix the jailbreak, come back to market, and do not reward Dario with the regulatory architecture he has been engineering for years. We will see if anyone is listening. WATCH THE FULL PODCAST ON The All-In Podcast

David Sacks laid out the cleanest theory about why Anthropic keeps calling for government regulation of AI. The answer has nothing to do with safety and everything to do with market structure. Anthropic spent months writing blog posts warning that AI was dangerous. Dario gave interviews about existential risk. He published a piece calling for an FAA-style agency to approve all AI models before release. He primed government officials to treat frontier AI as a threat requiring oversight. Then one of Anthropic's own most trusted partners reported a credible jailbreak from Fable 5. And the government did exactly what Dario had spent months conditioning them to do. They rolled it back. Sacks called it on the All-In podcast. Dario got exactly what he wanted. The FAA for AI is not a safety mechanism. It is a moat. A government approval process for new model releases does not hurt Anthropic. They already have the models. It hurts every competitor who does not. It hurts open source models that cannot be regulated because there is no company to regulate. It hurts the Chinese labs only insofar as they care about the American market at all. The only companies that benefit from a labyrinthine government approval process are the ones already at the frontier who can afford to wait out the review cycle. That is Anthropic. That is OpenAI. Nobody else. The proof is in what they did not do. Chimath pointed it out directly. If you are genuinely worried about misuse, you implement know-your-customer verification. You make people identify themselves before accessing the most powerful models. Anthropic could have done that tomorrow. They did not. They do not want KYC. KYC is transparent. KYC can be audited. KYC gives users due process. What they built instead was an invisible surveillance system that profiles you, degrades your access without telling you, and asks the government to make sure no one else can offer you an alternative. If you thought this was safety then you are wrong. That is capture. Sacks said the response should be simple. Fix the jailbreak, come back to market, and do not reward Dario with the regulatory architecture he has been engineering for years. We will see if anyone is listening. WATCH THE FULL PODCAST ON The All-In Podcast

Ihtesham Ali

25,284 views • 1 month ago

Important message that David Sacks addressed about winning the AI race, I think for the 1st time, that is to have American companies like Nvidia to have majority of global market instead of Chinese ones like Huawei. Jensen now has the conditions to win.

Important message that David Sacks addressed about winning the AI race, I think for the 1st time, that is to have American companies like Nvidia to have majority of global market instead of Chinese ones like Huawei. Jensen now has the conditions to win.

The AI Investor

61,140 views • 1 year ago

Sriram Krishnan on why Chinese models can distill off American models but American startups can't: "First of all, every model we have today is distilled off of all human knowledge. If you go back to the original GPT or the original Claude, they all had to derive off crawling the internet, crawling off all of our blogs and tweets and content. They kind of consume human knowledge to bootstrap that." "I'm going to steal this from Dean Meyer of Sequoia, who had a fantastic post yesterday. The situation which is bad today is that some of these models from other countries can train off American models, whereas if you are an American open weight model, it may be really confusing or challenging on whether you can distill off of other American models." "We kind of have a really uneven ecosystem here, where if you're a Chinese model, you could probably get a bunch of reasoning traces. But if you are a new Valley startup and you want to use some reasoning traces, you don't know what the legal situation is." "If you look at any American open source model today, they are using Chinese models as a teacher, or in a way as a part of the fine-tuning process. How do we make sure that is protected and enshrined, so if you're an American model company, you have the same level playing field as the Chinese models?" Sriram Krishnan

Sriram Krishnan on why Chinese models can distill off American models but American startups can't: "First of all, every model we have today is distilled off of all human knowledge. If you go back to the original GPT or the original Claude, they all had to derive off crawling the internet, crawling off all of our blogs and tweets and content. They kind of consume human knowledge to bootstrap that." "I'm going to steal this from Dean Meyer of Sequoia, who had a fantastic post yesterday. The situation which is bad today is that some of these models from other countries can train off American models, whereas if you are an American open weight model, it may be really confusing or challenging on whether you can distill off of other American models." "We kind of have a really uneven ecosystem here, where if you're a Chinese model, you could probably get a bunch of reasoning traces. But if you are a new Valley startup and you want to use some reasoning traces, you don't know what the legal situation is." "If you look at any American open source model today, they are using Chinese models as a teacher, or in a way as a part of the fine-tuning process. How do we make sure that is protected and enshrined, so if you're an American model company, you have the same level playing field as the Chinese models?" Sriram Krishnan

MTS

71,286 views • 14 days ago

An ABC (American-born Chinese) woman criticized DeepSeek for its overwhelming East Asian cultural focus, which she found difficult to embrace. Many ABCs want to appear to be more loyal and more "American" than white Americans, but Americans still think of them as "Chinese."

An ABC (American-born Chinese) woman criticized DeepSeek for its overwhelming East Asian cultural focus, which she found difficult to embrace. Many ABCs want to appear to be more loyal and more "American" than white Americans, but Americans still think of them as "Chinese."

𝘊𝘰𝘳𝘳𝘪𝘯𝘦

221,102 views • 1 year ago