{"id":582026,"date":"2026-07-12T16:09:12","date_gmt":"2026-07-12T16:09:12","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/582026\/"},"modified":"2026-07-12T16:09:12","modified_gmt":"2026-07-12T16:09:12","slug":"ai-giants-learn-the-hard-truth-of-the-modern-internet","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/582026\/","title":{"rendered":"AI Giants Learn the Hard Truth of the Modern Internet"},"content":{"rendered":"<p>Here&#8217;s some delicious AI irony for you.<\/p>\n<p>For years, tech giants have argued that if information is available on the internet, it can be used for <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/enterprise-ai-spending-grows-openai-leads-rbc-reveals-2026-6\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">AI<\/a> model development and outputs. They call it <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/ai-training-copyright-laws-big-tech-fair-use-openai-meta-2025-5\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">fair use<\/a>. Content owners have tried to prevent this, with no success.<\/p>\n<p>Now <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/anthropic-bot-crawlers-feast-on-web-give-little-back-ranking-2025-9\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">Anthropic<\/a>, <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/openai-deepseek-ai-model-distillation-training-data-copyright-karma-2025-1\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">OpenAI<\/a>, and Google are discovering what the rest of the internet has already learned through painful experience: once you put something online, people will find ways to use it in ways you don&#8217;t like and can&#8217;t stop.<\/p>\n<p>The latest flashpoint is something called &#8220;<a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/distillation-problem-ai-industry-anthropic-openai-2026-7\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">distillation<\/a>,&#8221; using the outputs of one AI model to improve another. Anthropic says competitors are harvesting its outputs at scale, turning billions of dollars of research into a shortcut for rivals. OpenAI and <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/google-compute-advantage-crushing-rivals-sam-altman-ai-2026-5\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">Google<\/a> have made similar warnings recently.<\/p>\n<p>The fear is obvious. Why spend billions building the best AI models if someone else can recreate much of this intelligence for a fraction of the cost?<\/p>\n<p>That&#8217;s a legitimate business concern. But here&#8217;s the awkward part.<\/p>\n<p>Symmetry<\/p>\n<p>From 30,000 feet, distillation looks an awful lot like what AI companies have been <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/google-microsoft-openai-fight-standards-limit-ai-access-websites-2025-9\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">doing to the rest of the internet<\/a>. Scrape web content for free and without permission. Turn it into a product you sell. Argue it&#8217;s fair use. Hope the lawyers sort out the details later.<\/p>\n<p>Anthropic says rivals are extracting intelligence from its top models. Website owners have spent the past three years saying Anthropic extracted intelligence from them. Both sides argue this is <a target=\"_self\" href=\"https:\/\/www.businessinsider.com\/openai-google-anthropic-ai-training-models-content-data-use-2023-6\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">against their terms of service<\/a>. The symmetry is hard to ignore.<\/p>\n<p>And despite pitching itself as the most ethical AI company, Anthropic is by far <a target=\"_self\" href=\"https:\/\/www.businessinsider.com\/anthropic-web-bots-crawling-referrals-cloudflare-distillation-2026-7\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">the worst actor here<\/a>. Its data-sucking bots crawl webpages thousands of times for every one referral the company sends back to the web.<\/p>\n<p>Bots on both sides<\/p>\n<p>Anthropic, OpenAI, and especially Google, frame this as a cybersecurity issue, pointing to <a target=\"_self\" href=\"https:\/\/www.businessinsider.com\/ai-models-openai-gpt4-bombarded-by-bots-extracting-intelligence-2023-9\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">swarms of bots<\/a> &#8220;attacking&#8221; their models to extract intelligence. But, they&#8217;ve been doing the same to many websites, bombarding them with so much bot crawling activity that site owners have seen their <a target=\"_self\" href=\"https:\/\/www.businessinsider.com\/openai-anthropic-ai-bots-havoc-raise-cloud-costs-websites-2024-9\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">operating costs skyrocket<\/a>. Not only are some websites having their content used without permission, they are paying more for the privilege.<\/p>\n<p>AI researchers say distillation is different from web scraping. But the AI industry can&#8217;t even decide whether distillation is OK or not, or where to draw the line.<\/p>\n<p>There&#8217;s the original, benign form of distillation, where labs use outputs from their own models to create different, often smaller, models. Then, there&#8217;s what Anthropic calls &#8220;distillation attacks,&#8221; where rivals use other people&#8217;s AI outputs to develop or improve their own offerings.<\/p>\n<p>Even here, though, the lines blur, with some AI researchers now worrying that Anthropic&#8217;s aggressive stance will hurt all types of distillation. Open-source AI expert Nathan Lambert calls this &#8220;<a target=\"_blank\" class=\"\" href=\"https:\/\/www.interconnects.ai\/p\/the-distillation-panic\" data-track-click=\"{&quot;click_type&quot;:&quot;other&quot;,&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;outbound_click&quot;}\" rel=\" nofollow noopener\">distillation panic<\/a>.&#8221;<\/p>\n<p>So, let me wrap this up for you, from the AI giants&#8217; perspective: They can extract intelligence from the web for free and without permission. That&#8217;s different from distillation, which is OK. Oh, but not when distillation involves using their content in ways they don&#8217;t like.<\/p>\n<p>&#8220;A cat-and-mouse game&#8221;<\/p>\n<p>This contorted argument is being demolished by the brutal realities of the modern internet. Anthropic has spent months <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/researchers-furious-anthropic-mythos-fable-hidden-ai-limits-2026-6\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">tightening access to its top models<\/a> to stop competitors from learning too much. Those efforts have either <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/anthropic-mythos-made-wrong-tradeoff-new-model-guardrails-llm-development-2026-6\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">backfired<\/a>, or they&#8217;re just spurring more elaborate workarounds.<\/p>\n<p>Once information goes online, clever people will figure out how to collect it, remix it, and profit from it. That&#8217;s true for blogs, photos, software code, videos, and yes, AI giants&#8217; precious model outputs.<\/p>\n<p>&#8220;It&#8217;s always a kind of a cat-and-mouse game,&#8221; Zilan Qian, a researcher at the Oxford China Policy Lab, told Business Insider. As long as AI model outputs are out in the world, &#8220;people will probably find a way to get access to it.&#8221;<\/p>\n<p>Indeed, distilling another company&#8217;s AI model may even be fair use. These legal arguments can cut both ways.<\/p>\n<p>Welcome to the new internet, Anthropic, OpenAI, and Google. Get used to it.<\/p>\n<p><strong>Sign up for BI&#8217;s Tech Memo newsletter <\/strong><a target=\"_self\" href=\"https:\/\/www.businessinsider.com\/subscription\/newsletter\/tech-memo\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">here<\/a><strong>. Reach out to me via email at <\/strong><a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/mailto:abarr@businessinsider.com\" data-track-click=\"{&quot;click_type&quot;:&quot;other&quot;,&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;outbound_click&quot;}\" rel=\" nofollow noopener\">abarr@businessinsider.com<\/a><strong>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Here&#8217;s some delicious AI irony for you. For years, tech giants have argued that if information is available&hellip;\n","protected":false},"author":2,"featured_media":582027,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,247361,19027,19833,6006,289,290,247362,247090,18,247363,823,19,3113,17,247360,307,77466,32130,82,17712,806],"class_list":["post-582026","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-giant","tag-ai-model-development","tag-ai-researcher","tag-anthropic","tag-artificial-intelligence","tag-artificialintelligence","tag-content-owner","tag-distillation","tag-eire","tag-fair-use","tag-google","tag-ie","tag-intelligence","tag-ireland","tag-modern-internet","tag-openai","tag-output","tag-rival","tag-technology","tag-way","tag-web"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116907878928958079","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/582026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=582026"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/582026\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/582027"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=582026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=582026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=582026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}