Earlier quoted context omitted.
Perhaps even more importantly, the current frontier LLM models are self-admittedly the product of enormous quantities of copyright infringement and even less savory inputs, so calling them out for distilling the fruit of that tainted tree reads as highly hypocritical at best.
No - distillation is not data inputs. Raw materials vs. Value add. They are different things, like ore and metal. Distillation is a new thing we need to understand, it's probably closer to IP than not.
Are you suggesting data input is further from IP than distillation?
That would stun me, but it's a little hard to read.