Development and improvement of nuclear weapons was an entirely American project until the technology was exfiltrated and then it became an instant arms race. That cat is already out of the bag with LLMs. Distillation is just the fastest way to keep pace but that in no way prevents other countries and actors from doing it the hard way.
An arms race doesn’t imply one side winning, it’s not a race with an end goal, it’s a race to keep pace or retake the lead position which can oscillate between the parties involved indefinitely. The other option is to agree to make no further progress or to disarm.