While Anthropic presses regulators to crack down on Chinese labs distilling frontier models, Y Combinator CEO Garry Tan wants the opposite. TechCrunch reports that Tan told CNBC he would do nothing, and suggested there should be an American distillation regime, with smaller US open-weight labs using the same techniques on US frontier models. His argument, as he put it to TechCrunch, is that the big labs did not ask permission when they trained on the world's public knowledge and copyrighted material, so locking customers out of what models tell them feels constraining. Tan is not endorsing the stolen-credential tactics Anthropic described. His stated fear is a single company running away with everything.