Nvidia CEO Jensen Huang called AI model distillation competition. U.S. Treasury Secretary Scott Bessent has called it theft. U.S. officials accuse Chinese firms of using distillation to extract capabilities from U.S. models. Huang said companies are allowed to test and learn from others' products. He added Nvidia would prefer they did not. He suggested firms disable services for unwanted users. CISA accused China of industrial-scale knowledge distillation campaigns. Anthropic said Alibaba and DeepSeek engaged in illicit distillation. China has rejected the claims.