The Impact of Distillation on AI Development

The distillation technique in AI has revolutionized how models are built by allowing smaller teams to access advanced capabilities without extensive resources. This method involves training a smaller model by leveraging the knowledge of a larger, more complex model, enabling startups to compete effectively against industry leaders. For example, a new reasoning model was created for only $450, demonstrating how distillation can significantly reduce costs and increase efficiency in developing AI applications. This shift opens the door for innovation, as more players can now enter the AI space with less capital investment, challenging established companies.