If the distillation "attacks" created useful inputs to open weight models, ai-2027 was directionally correct that the Chinese would find ways to extract IP from western firms. (Scaled account creation and grinding outputs etc is not a dramatic story element as spies, though!)

Whether the distillation has constituted "attacks" or has or will meet the bar of "stealing" IP is not super interesting to me, though.

Don’t need a “better” hacker if you have ten thousand AIs all trying literally every single possible thing to exploit a system with. The main issue is that this will eventually bring down the exploitation cost enough to target very minor targets who weren’t worth it before.

Just like how Windows 95 contributed to its own development process.

The AI 2027 paper/website is exactly the same as random guesses from tech bros after a couple of beers telling you what they think the future will be. It has nothing to do with political theory, economic theory, game theory, or any other quasi-scientific or rigorous evaluation of real world events and predictable outcomes. It's just vibes. If they're wrong nobody will notice, if they're right people will call them geniuses.