China's AI Companies May Be 'Distilling' America's AI Models

Anthropic reportedly deployed software to spy on China-based customers to identify rivals distilling its AI models, a process where large systems tutor smaller ones. The company removed the tracking code following criticism from privacy advocates and a developer's disclosure. Separately, a 17-year-old developer has created NYXAR MIND, a bare-metal ASI cognitive substrate on a Redmi 9 phone using C11, Common Lisp, and Nim, featuring hardware sensing, self-mutating code, and a parallel dreaming process.