Nadella's 'reverse information paradox': you pay for intelligence twice.

In a July 13 essay, Microsoft's CEO argued companies using closed frontier models pay once in tokens and again by leaking proprietary knowledge, the prompts, tool traces, and especially the corrections, that gets distilled into the provider's institutional know-how (TechCrunch). He called it ironic that OpenAI and Anthropic train on public data under fair use and learn from customer exhaust while banning distillation of their own models, and floated a new AI-era patent concept to let firms guard IP. It's a competitive shot, obviously, positioning Microsoft and open models against the closed labs. It's also a real question. When your corrections teach the model, whose asset is the improvement?