Y Combinator’s Garry Tan wants U.S. open-weight AI labs to ‘distill’ frontier models, toomyappsplusSeptember 11, 2026 When it comes to Chinese AI labs using distillation techniques to extract knowledge from frontier model makers, Y Combinator CEO Garry Tan is hoping regulators stay out of it. In fact, he thinks U.S. AI labs should perhaps play the same game.