News from the IT Home on September 29th: Jensen Huang, CEO of NVIDIA ( Nvidia ), stated that model distillation—which involves using the output results of other models to train new models—is a form of market competition; however, the White House has categorized this practice as theft.

IT noticed that US Treasury Secretary Scott Bessent once referred to distillation as "thiefery" in July and threatened to impose sanctions on overseas companies that used this method to extract technical capabilities from the US's own developed models.

But on Monday local time, when Jensen Huang appeared on the program “Financial Morning” ( Squawk Box ) on the American consumer news and business channel ( CNBC ), when asked whether model distillation could be considered “plundering,” he replied: “This is called competition. ( That ’s called competition .)”

He said, "You're completely free to test other products to your heart's content." He also added that some companies, in order to understand how NVIDIA's products work, disassembled and analyzed them so thoroughly that only the basic framework remained.

Of course, I don't want them to do that. I certainly hope that no one will study or copy our product, so that we can continue to develop smoothly. But to be honest, competition makes everything better.

Jensen Huang said, "If you don't like this situation and don't want others to use your product, you just need to understand your customers and turn off the corresponding services."

Earlier this month, the US Cybersecurity and Infrastructure Security Agency accused Chinese AI companies of conducting "industrial-scale knowledge distillation operations," claiming that such actions violated the user service agreements of American companies.

Anthropic also stated earlier this month that it had discovered that both Alibaba, which develops the Qianwen (Qwen) series of models, and Deep Quest (DeepSeek) engaged in 'illegal distillation' practices.

The Chinese side has refuted the aforementioned allegations.