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Nvidia CEO Jensen Huang Says AI Model Distillation Is Competition, Not Theft

Sep 29, 2026
CNBC
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Summary

Nvidia CEO Jensen Huang says AI model distillation is legitimate competition rather than theft, breaking with Treasury Secretary Scott Bessent’s threat of sanctions as Anthropic accuses Alibaba and DeepSeek of illicitly extracting U.S. model capabilities.

Key Points

  • Nvidia CEO Jensen Huang says AI model distillation is "competition," rejecting the White House's characterization of the practice as theft.
  • Treasury Secretary Scott Bessent calls distillation "theft" in July and threatens sanctions against overseas companies that use it to extract capabilities from U.S.-built models.
  • Anthropic says it finds Alibaba and DeepSeek engaging in "illicit distillation," while China rejects the allegations.

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