Nvidia CEO Jensen Huang described AI model distillation as competition in a CNBC interview, challenging the U.S. government’s characterization of the practice. He said companies are allowed to test rivals’ products to learn from them and improve their own, and argued that service providers should control access if they object.
The remarks contrast with U.S. Treasury Secretary Scott Bessent’s description of distillation as theft in July. Bessent threatened sanctions.
U.S. officials have accused Chinese AI firms of covert, industrial-scale efforts to use distillation to illicitly replicate American models’ capabilities. The accusations have prompted threats of sanctions and Entity List designations.