Well China is consistently 6 months behind the frontier labs(possibly because they can they harvest data from released frontier models). If the scaling continues, US will win, but if not then China will win as the models will converge.
Honestly, I think its quite possible that models will be retrained with gaps in their knowledge. e.g. a coding model for commercial use probably doesn't need to have deep knowledge of biology, and training on biological sciences probably doesn't help those evals much.
Honestly, I'd welcome such an approach.
https://old.reddit.com/r/Anthropic/comments/1snorbg/the_bigg...
I don't know enough about distillation to understand how much this hinders/slows the process, but it sounds at least superficially plausible.