Y Combinator CEO: No action needed on Chinese distillation of US AI models

Y Combinator CEO Garry Tan stated at the company's annual Demo Day that he chooses to take no action regarding Chinese firms, including DeepSeek, Moonshot AI, and MiniMax, distilling OpenAI and Anthropic models. Tan suggested that regulators should instead focus on maintaining a commercial balance between open-weight and frontier models. He also expressed skepticism toward AI doomsday scenarios, noting that cybersecurity is the most pressing risk, while the economic and employment impacts of AI will take decades to fully materialize.