OpenAI and Anthropic should enter into distillation agreements with other US labs. Turn a threat into a profit center.

Other US labs cannot directly distill from OpenAI/Anthropic as it’s a violation of the terms of service. It holds other US labs back. Leading them to build second tier models And in the end OpenAI/Anthropic may be unable to prevent distillation.

Why fight it when there’s clear money to make here?

OpenAI/Anthropic are already charging for access to their closed models. They're getting paid.

They are also not interested in agreements. They want to keep as big a moat as possible because they love money. And you need two to tango.