Well, other than the infrastructure they got from illegally routing millions of paying customers' requests through Anthropic's Opus 4.8 in a distillation attack...
That is such a canard, IMO. FWIW, Anthropic and OpenAI encrypt "thinking" token outputs in their models, while Chinese labs don't. If anything, it's more likely that everyone is using open-weight models in their synthetic training data generation pipelines. It's way easier to distill from logits than it is to distill from hard tokens.
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We weep for Dario, that he had to suffer such a devastating attack against his Terms of Service.