That proximity might have other benefits as well. During his trial against OpenAI, Musk acknowledged that AI “distilling” was real — a process in which one model maker sets up many fake accounts to send prompts to a competitor in order to learn how it works. As the New York Times reported, when a lawyer asked him if xAI had ever distilled technology from OpenAI, Musk replied: “Generally AI companies distill other AI companies.”
Anthropic in February, accused three Chinese model makers of doing this to Claude. Presumably, Anthropic and Google feel they have safeguards against SpaceX doing this while they are using its infrastructure. But hosting Anthropic’s compute could still give SpaceX greater visibility into how the company operates than most competitors would ever have.
There appears to be nothing but upside for Musk’s company in this partnership at the moment. As for tomorrow, and as the three-year contract ages, who knows?
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