So here is an important question I think.

If LLM outputs aren't copywriteable and you create your own synthetic training set using Fable and share it publicly on huggingface, and someone else uses that training set to fine-tune a model, would this be considered illegal?

I ask because this happens all the time, synthetic datasets have basically become a key aspect of training a model at this point. I even generated a synthetic set from DeepSeek v4 to aid in fine-tuning a classifier just a few weeks ago.

So I just wonder on what grounds any of this makes sense, I wouldn't be surprised if some of these American labs were using open models on their own self hosted infrastructure to generate training data, but by nature of them being open nobody has to know.

I'll make a prediction: I don't think we will ever see any of the evidence of this "distillation" before they end up implementing some type of ban.