I see your 'fine point' but I don't think it holds - 'distillation' is a perfectly reasonable term to describe the process of creating outputs from one model to that expose key training element, to use in another model.
I think where the definition may be be invalid, is in the creation of 'unrelated data sets for training' models, for unrelated issues.
Creating training sets that mach a models core training, is definitely distillation, it does not have to expose the reasoning traces.
Synthesizing data for some arbitrary thing ... I'm not sure that would be the same thing.
It's hard to draw the line.
But the Chinese models are absolutely distilling - and would not be competitive without this distillation.
At the same time, there's a lot of real innovation and regular building going on at the same time over there.
No - you can't distill if what you are given doesn't have the thing in it that you want to distill out of it.
I don't know why it's so important to you to use the word "distillation", but it's the wrong word to use.
BTW OpenAI on twitter also said that Kimi 3 "cannot be explained away by distillation or anything like that". The timeline of how long it takes to train a model and when Fable was released don't even line up. This is just Anthropic as usual trying to manipulate the US government into helping them shut down competition.
Words have meaning - you cant just redefine them because you want to.
Are reasoning traces required for distillation? Well they are if what you are trying to distill is reasoning, such as coding expertise.
Do you need reasoning traces for "LLM as judge"? No, but it would be highly perverse to call that distillation when there is a more accurate name for it - LLM as judge.
If you want to call use of Anthropic's redacted model outputs in any fashion that violates their terms of service (using them them to help develop anything that competes with Anthropic) as "distillation" then I can't stop you, but it reduces their claims to a joke.
Finally, as noted, OpenAI (who are just as anti-Chinese as Anthropic) said that Kimi 3 can't be explained via distillation (even true distillation!!), or even "anything like it". But random internet guy, you, disagrees. OK.
I think where the definition may be be invalid, is in the creation of 'unrelated data sets for training' models, for unrelated issues.
Creating training sets that mach a models core training, is definitely distillation, it does not have to expose the reasoning traces.
Synthesizing data for some arbitrary thing ... I'm not sure that would be the same thing.
It's hard to draw the line.
But the Chinese models are absolutely distilling - and would not be competitive without this distillation.
At the same time, there's a lot of real innovation and regular building going on at the same time over there.