Jensen Huang says AI model distillation is "competition"; Scott Bessent described it as "theft" in July and threatened sanctions against overseas companies (Kai Nicol-Schwarz/CNBC)

Jensen Huang stated that AI model distillation is a competitive activity, while Scott Bessent called it “theft” and warned that overseas companies could face sanctions. The remarks highlight a growing dispute over how AI models are replicated and the legal risks involved.