Your link doesn't suggest a violation of TOS, but rather a policy shift disallowing their major competitors to use their model for any use.

That thread you linked suggested they were using it with cursor as part of their development process, not for distilling.

>"Hi team, I believe many of you have already discovered that anthropic models are not responding on cursor. According to cursor this is a new policy anthropic is enforcing for all its major competitors."

Anthropic seems to have no issues: https://x.com/NotTomBrown/status/2093541294027280657?s=20

> if that datacenter deal they signed with Musk changes anything

It's hard to imagine a 1B / month deal wouldn't.

running on someone else's server, you're basically giving them your weights.

i'll be surprised if anthropic doesnt follow. cursors biggest advantage has been giving users a polished wrapper around whichever frontier model they prefer

>Musk admitted to distilling their models.

what's the moat for AI labs like OpenAI and Antrhopic as they seek trillion IPOs. a lot of people said Chinese models also distill US LLM models. if it is this easy to do. how do US AI labs justify asking for trillion?