Palantir CTO Shyam Sankar says Chinese open-source AI models pose an economic threat to the U.S. because they are allegedly built on stolen American IP. He told Bloomberg many Chinese models are the result of unauthorized “distillation,” where developers train new systems using outputs from frontier models. His remarks echo claims from U.S. AI labs, including Anthropic, which recently accused Alibaba of using thousands of fake accounts to distill Claude.