It turns out U.S. law doesn’t have jurisdiction across the entire world, nor does Anthropic and OAI’s rather blatant attempt to buy government influence.
For example, if OpenAI / Anthropic were actually open, other US labs could be building near-frontier open weights models by distilling off OpenAI / Anthropic. But because US companies don't want to be sued, US labs who obey terms of service, will be at a disadvantage to Chinese peers.
Maybe US labs need to just not care and distill from OpenAI / Anthropic anyways?
Meta, for examples, doesn’t want employees to use Claude Code due to distillation risk.