If the distillation "attacks" created useful inputs to open weight models, ai-2027 was directionally correct that the Chinese would find ways to extract IP from western firms. (Scaled account creation and grinding outputs etc is not a dramatic story element as spies, though!)
Whether the distillation has constituted "attacks" or has or will meet the bar of "stealing" IP is not super interesting to me, though.
It's actually turbo boring and predictable. Capitalism has long since standardized on out and out lies to influence public perception and government action.
The idea that distillation is a significant contributor to the capabilities of the Chinese models is not true. Kimi K3 came out 2 weeks after Fable and uses a number of novel NN architecture innovations.
Whether the distillation has constituted "attacks" or has or will meet the bar of "stealing" IP is not super interesting to me, though.