"""The bitter lesson""" is how you get the current swath of massively unprofitable AI companies that are competing with each other over who can lose money faster.
I can't tell if you're perpetuating the myth that these companies are losing money on their paid offerings, or just overestimating how much money they lose on their free offerings.
If it costs you a billion dollars to train a GPT5 and I can distill your model for a million dollars and get 90% of the performance, that’s a terrible deal for you. Or more realistically, whoever you borrowed from.
Then if you offer your distilled model for commercial services, you would get sued by OpenAI in court.