Dario's been openly talking how worried he is about China and labs getting synthetic training data off their models, for years. Most recently in relation to "Mythos level" capabilities.
Not really distillation, just synthetic training data.
That's...a good thing. A "moat" is an anticompetitive practice. You don't want companies to have moats.
Meanwhile, if you mean "Anthropic must think their technical advantage isn't very large..." then your conclusion is literally disproven by your premise.
Not really distillation, just synthetic training data.