It just distillation. Drop the attack. It's cleaner

you can't prevent distillation with KYC requirements you can't prevent distillation at all whatsoever

I think the most likely outcome is that AI becomes an ever cheaper commodity. There'll be little money in it because they'll all just copy each other and quickly get back to roughly the same competitive edge. Profit margins will be super slim. There will probably be hundreds of models that people run locally. There will be many flavors of each. Some with guardrails, others without. I agree we will probably see a KYC play. Although I doubt it will stop state attacks like the one I believe the Chinese are carrying out. I think they know our economy depends on AI right now and hope to harm us by copying proprietary models and making them open. Yeah, the copy cats will get pissed about being copied. I'm sure there will be control attempts. I think they'll fail.