Jensen Huang says AI distillation is 'competition.' Scott Bessent has called it 'theft'

Nvidia CEO Jensen Huang called AI model distillation "competition," contrasting U.S. officials who label it "theft" amid tensions with China. The U.S. Treasury warned of sanctions on overseas firms using distillation to extract U.S. AI capabilities. Huang acknowledged competitors reverse-engineer Nvidia's products but said competition benefits the industry.