Jensen Huang: 'Distillation Is Fundamental to Intelligence' — Days After the White House Accused Moonshot of Distilling Anthropic's Fable
r/LocalLLaMA surfaced Huang's defense (310 upvotes, 48 comments) that 'distillation — learning from AI, learning from other people, and learning from other sources of knowledge — is fundamental to intelligence,' delivered alongside his first-ever post on X urging policymakers not to lock down open models. The counterparty is White House OSTP director Michael Kratsios, who on July 22 became the first senior US official to name a specific Chinese lab and a specific American model, alleging Moonshot ran covert industrial-scale distillation of Anthropic's Fable and obtained GB300-equipped servers via Thailand; Treasury Secretary Scott Bessent said sanctions and Entity List designations are 'on the table.' A Moonshot engineer's rebuttal is the sharpest datapoint in the thread: Fable went public July 1 and K3 launched July 15, leaving a 15-day window that experts quoted by SCMP call implausible for a full frontier training run.
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