alt Hacker NewsYour link doesn't suggest a violation of TOS, but rather a policy shift disallowing their major competitors to use their model for any use.
That thread you linked suggested they were using it with cursor as part of their development process, not for distilling.
>"Hi team, I believe many of you have already discovered that anthropic models are not responding on cursor. According to cursor this is a new policy anthropic is enforcing for all its major competitors."
Cursor might have framed it that way at the time, but 4 months prior Anthropic cut OpenAIs access under the same clause in the ToS: https://www.wired.com/story/anthropic-revokes-openais-access...
And a month before the OpenAI block, they blocked Windsurf for the same reason: https://www.forbes.com/sites/johanmoreno/2025/06/05/anthropi...
So its pretty clear the TOS had this clause prior to Jan 2026.