Source: SiliconANGLE
Chinese AI labs are systematically distilling OpenAI, Anthropic, and other U.S. frontier models—extracting their capabilities into smaller, cheaper systems that evade export controls and sanctions. This accelerates the dual-use AI arms race: the U.S. can restrict model weights, but once deployed, frontier models become training data for competitors operating outside the regulatory perimeter. The strategic signal matters more than military applications—Beijing is proving that compute and talent, not model ownership, determine AI capability ceilings.