Huang Defends AI Distillation as 'Competition', Contradicts White House Over 'Theft' Claim

Nvidia CEO Jensen Huang has weighed in on the controversy surrounding AI model distillation, describing it as 'competition' rather than 'theft.' This comes after Treasury Secretary Scott Bessent called the practice 'theft' and threatened sanctions against companies that use it to extract capability from U.S.-built models.

Distillation has become a key issue in the AI rivalry between the U.S. and China, with U.S. officials accusing Chinese companies of engaging in the practice. Nvidia's Huang acknowledged that some companies are stripping down their products 'down to bones' as they try to learn how they work, but said this is simply competition.

'You're allowed to test somebody else's products all you want,' Huang said. However, he also suggested that companies could disable the service if they don't like it. The White House has not commented on the matter.