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Y Combinator's Garry Tan proposes that U.S. open-weight labs should legally adopt distillation techniques from frontier models to create robust domestic alternatives, countering claims of illicit practices by Chinese actors. His stance challenges the current regulatory push for restrictions, arguing that since frontier models were trained on public data without permission, users should similarly be free to extract knowledge through legitimate technical means. This debate highlights a critical tension between proprietary control and open innovation in the development of accessible AI infrastructure.
Y Combinator’s Garry Tan wants US open-weight AI labs to ‘distill’ frontier models, too

Tan wants smaller, American open-weight AI labs to use the same kind of training techniques on American frontier AI labs, giving the U.S. a more robust set of open-weight options that aren’t Chinese.
When it comes to Chinese AI labs using distillation techniques to extract knowledge from frontier model makers, Y Combinator CEO Garry Tan is hoping regulators stay out of it. In fact, he thinks U.S. AI labs should perhaps play the same game. “I would do nothing,” he told CNBC in an interview earlier…
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