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There's evidence various third-party models (including Deepseek) used distilling in training, based on models from those leading services. So they have more flexibility with pricing.

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Is that fundamentally any different than what e.g., Meta and OpenAI have done?

Besides, hasn't SCotUS ruled that raw LLM output isn't subject to copyright? So these companies would be breaking a ToS at worst.

So? And Anthropic/OpenAI literally stole copyrighted content to train their models.

The point was that distilling based on others' models for training means they're not spending the same amount on R&D and/or training, giving them headroom in other ways (responding to the parent's point). It wasn't a comment reflecting on copyright/fair use.

In the same fashion, Anthropic/OpenAI also reduced their training cost by not purchasing the license to copyrighted work and stealing it instead.

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