In an X post on Sunday, Microsoft CEO Satya Nadella took a veiled swipe at AI labs like Anthropic, calling it hypocritical for model makers to complain about distillation—the process of training a less powerful model based on the outputs of a stronger one. Nadella wrote that while model providers having fair use rights to train on public data is needed, he finds it ironic that they then impose restrictive terms on distillation and reserve the right to learn from customer usage and interaction data. He added that if learning only flows in one direction, owners of the learning infrastructure make all the money while creators of the knowledge get left out. Though not named, Nadella’s comments seemed targeted toward Anthropic, whose CEO Dario Amodei earlier this year complained that Chinese model makers are using Claude to train their own models. Last month, Anthropic wrote to senators saying Alibaba had carried out "the largest known distillation attack" on it to date. In his post, Nadella warned that companies relying on leading models hand over proprietary data and pay to use them, advising enterprises to own their AI infrastructure and conduct their own evaluations and "learning loop."