YC CEO Garry Tan Chooses Inaction on Chinese Companies Distilling Cutting-Edge Models

Y Combinator CEO Garry Tan stated at the YC annual Demo Day that he has chosen not to take action regarding the behavior of Chinese companies (such as DeepSeek, Moonshot AI, MiniMax, etc.) distilling OpenAI and Anthropic models. He suggested that regulators focus on maintaining a commercial balance between open-weight models and cutting-edge models. Tan holds a reserved view on the AI doomsday narrative, believing that cybersecurity is the most pressing risk at present, while the employment shocks and economic transformations triggered by AI will take decades to truly impact society.

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