Nadella calls out AI labs like OpenAI and Anthropic for banning distillation while training on everyone else's data

Microsoft CEO Satya Nadella has criticized AI companies like OpenAI and Anthropic for restricting the distillation of their models while simultaneously training their systems on publicly available data and customer interactions. Nadella labeled this inconsistency a reverse information paradox, arguing that companies should maintain sovereignty over how their data is used for training. This critique highlights a growing industry tension regarding the ethical standards and double standards applied to data collection and model development within the AI sector.