Company · compiled 3 September 2026 · 75 sources

Company view of AI distillation: who uses it, who sells it, who polices it

Every major AI lab now uses knowledge distillation to build its small and mid-tier models: Google states in the Gemini 2.5 report that all models 'Flash size and below' are distilled, Meta co-distilled Llama 4 Maverick from the 2-trillion-parameter Behemoth, Qwen3's small models are 'strong-to-weak' distilled from Qwen3-235B, and Apple retrains its 3B on-device model with a distillation loss from a 64-expert MoE teacher. Three hyperscalers have shipped distillation as a product - OpenAI Model Distillation (Oct 2024), Azure OpenAI stored completions (2024) and Amazon Bedrock Model Distillation (GA May 2025) - while Google's Vertex Gemini distillation is so far documented only as a pre-GA, allowlist-only service that prohibits production use. Open-source toolkits from Hugging Face (TRL GKD, Open R1) and Arcee (DistillKit) commoditised the technique, and open-weight licenses from DeepSeek, Qwen, Mistral, Moonshot, MiniMax, Zhipu, NVIDIA and Hugging Face expressly permit derivative distillation. The same companies police distillation of their own outputs through terms-of-service clauses - OpenAI, Anthropic, Google, xAI and Cohere all bar training competing models - and the dispute escalated from OpenAI's January 2025 claims against DeepSeek to Anthropic's February 2026 report of 24,000 fraudulent accounts, its June 2026 letter to the Senate Banking Committee alleging a 28.8-million-interaction campaign by Alibaba, and White House memorandum NSTM-4 in April 2026. The split is not purely US-versus-China: in April 2026 Elon Musk conceded under oath that xAI had 'partly' used OpenAI's technology to train its own models.

Key figures · 8 figures

Fraudulent accounts in Anthropic's Feb 2026 report

24,000 accounts

16M+ exchanges

DeepSeek, Moonshot AI and MiniMax combined; MiniMax alone drove 13M+ exchanges

anthropic.com

Largest single distillation attack reported (Alibaba/Qwen on Claude)

28,800,000 interactions

25,000 accounts in ~6 weeks

Per White House OSTP director Kratsios and Anthropic's June 2026 letter to the Senate; Alibaba banned Claude Code internally two weeks later

cyberscoop.com

Companies profiled that publicly document a distilled model

11 of 18

7 undisclosed

Derived from the company-matrix table in this file: OpenAI, Anthropic, Amazon, xAI, Moonshot AI, MiniMax and Cohere do not publicly document a distilled model. Separately, OpenAI, Microsoft/Azure, Amazon, Google and NVIDIA sell distillation tooling.

Companies with explicit anti-distillation / anti-competing-model ToS clauses

5 companies

OpenAI, Anthropic, Google, xAI, Cohere

Versus 9 permissive open-weight licenses in the tos-clauses table of this file that allow derivative distillation (Meta, DeepSeek, Alibaba, Moonshot, MiniMax, Mistral, NVIDIA, Microsoft/Phi, Hugging Face); Cohere Labs' Command R7B is CC-BY-NC and permits non-commercial derivatives only, so it is not counted.

GPU-hour savings of on-policy distillation vs RL (Qwen3-8B)

10 x fewer

1,800 vs 17,920 GPU hours

Qwen3 technical report Table 21; distilled model also scored higher on AIME'24 (74.4 vs 67.6)

arxiv.org

Training tokens saved by prune-and-distill (NVIDIA Minitron)

160 x fewer

94B tokens vs 15T for the Llama 3.1 8B teacher

Llama-3.1-Minitron 4B produced from Llama 3.1 8B. NVIDIA separately claims up to 40x fewer training tokens per additional model when producing a family from one trained parent, and a 1.8x total compute saving.

developer.nvidia.com

Output price gap, flagship vs nano tier (OpenAI GPT-6 Astra vs GPT-5-nano)

125 x cheaper

$50.00 vs $0.40 per 1M output tokens

Current flagship gpt-6-astra against the cheapest listed nano tier; the cheapest current-generation small tier is gpt-5.6-luna at $1.20 per 1M output. OpenAI does not disclose training method for mini/nano tiers.

developers.openai.com

Distillation-as-a-service products from hyperscalers

3 shipped (+1 pre-GA)

Oct 2024 to 2025

Shipped: OpenAI Model Distillation (Oct 2024), Azure OpenAI stored completions + distillation (2024), Amazon Bedrock Model Distillation (preview Dec 2024, GA May 2025). Google Vertex Gemini distillation is documented only as pre-GA, allowlist-only with production use prohibited, so it is not counted as shipped.

aws.amazon.com

Key findings · 8 findings

  1. Distillation is now the default way every lab builds its small models

    Google's Gemini 2.5 report states plainly that 'the smaller models in the Gemini 2.5 series — Flash size and below — use distillation', and Gemma 2 and Gemma 3 are trained with knowledge distillation rather than plain next-token prediction. Meta pruned Llama 3.1 8B and distilled logits from 8B/70B to make Llama 3.2 1B/3B, then co-distilled Llama 4 Maverick from Behemoth. Qwen3, Ministral 3, Apple's on-device 3B, NVIDIA's Minitron/Nemotron Nano and DeepSeek's R1-Distill series all document the same pattern in their technical reports.

    Sources arxiv.org · ai.meta.com · arxiv.org · arxiv.org

  2. Labs report distillation beats RL on cost and often on quality

    Qwen3's ablation shows on-policy distillation lifting Qwen3-8B to 74.4 on AIME'24 versus 67.6 for RL, using 1,800 rather than 17,920 GPU hours. DeepSeek reports that R1-Distill-Qwen-32B (72.6 AIME'24) beats OpenAI o1-mini (63.6) with SFT-only distillation and no RL stage. NVIDIA reports up to 40x fewer training tokens and Mistral reports Ministral 3 trained on 1-3T tokens versus 15-36T for comparable Qwen 3 / Llama 3 models.

    Sources arxiv.org · huggingface.co · developer.nvidia.com · deeplearning.ai

  3. Closed labs sell distillation, but only inside their own model family

    OpenAI's Model Distillation (stored completions + evals + fine-tuning, Oct 2024) lets customers distill GPT-4o/o1-preview into GPT-4o mini; Azure mirrors it; Amazon Bedrock requires teacher and student to be from the same model family, so Nova Premier distills into Nova Pro/Lite/Micro, Claude 3.5 Sonnet v2 into Claude 3 Haiku, and Llama 3.3 70B / Llama 3.1 405B into Llama 3.2 1B/3B and Llama 3.1 70B/8B; Google's Vertex early-access service distills Gemini 3.1 Pro into Gemini 2.5 Flash. In every case the student must be a model the vendor hosts, so distillation revenue stays on-platform. Notably OpenAI's docs now say it is 'winding down the fine-tuning platform' for new users, and Azure retires stored completions on 2026-10-15.

    Sources infoworld.com · aws.amazon.com · aws.amazon.com · developers.openai.com · learn.microsoft.com

  4. Terms of service, not copyright, are the main legal lever against cross-lab distillation

    OpenAI forbids using 'Output to develop models that compete with OpenAI'; Anthropic's commercial terms bar access 'to build a competing product or service, including to train competing AI models'; Google's Gemini API terms say 'You may not use the Services to develop models that compete with the Services'; xAI's terms list 'distilling' among prohibited acts; Cohere bars use 'for the purpose of building a similar or competitive product or service'. Meta's Llama 4 license takes the opposite approach: derivative models are allowed but must carry 'Llama' at the start of their name.

    Sources openai.com · anthropic.com · ai.google.dev · developer.meta.com

  5. Open-weight labs explicitly invite distillation in their licenses

    DeepSeek-R1's model card states the series 'allow for any modifications and derivative works, including, but not limited to, distillation for training other LLMs' under MIT. Qwen3, Mistral 3/Ministral 3 and SmolLM3 ship under Apache 2.0; Kimi K2 and MiniMax M2 use a modified MIT that only adds an attribution requirement above 100M MAU or $20M monthly revenue; NVIDIA releases Nemotron under its Open Model License and even lists the teacher models (DeepSeek-R1, GPT-OSS-120B, Qwen) used to synthesise 3.5T of its 10.6T pre-training tokens.

    Sources huggingface.co · huggingface.co · huggingface.co · mistral.ai

  6. The accusation cycle escalated from one lab to a US government policy in 15 months

    OpenAI first alleged DeepSeek distillation in January 2025; the House Select Committee on the CCP's April 2025 report called it 'highly likely'. In February 2026 OpenAI told the committee DeepSeek used 'obfuscated third-party routers' and Anthropic published per-lab exchange counts (DeepSeek 150K, Moonshot 3.4M, MiniMax 13M). The framing is not purely US-versus-China: on 30 April 2026 Elon Musk conceded under oath in Musk v. OpenAI that xAI had 'partly' used OpenAI's technology to train its models. By April 2026 OpenAI, Anthropic and Google were also sharing threat intelligence through the Frontier Model Forum and the White House issued NSTM-4 calling the campaigns 'deliberate, industrial-scale'. In July 2026 OSTP director Kratsios accused Moonshot of distilling Anthropic's Fable model to build Kimi K3.

    Sources assets.bwbx.io · anthropic.com · nextgov.com · cyberscoop.com · forbesafrica.com

  7. Defensive measures now shape products: ownership bans, hidden fingerprints, CoT hiding

    Anthropic barred entities more than 50% owned by companies in unsupported regions in September 2025, citing that they 'could also potentially use our models to advance their own AI development through techniques like distillation'. OpenAI's memo describes classifiers for 'reinforcement learning-style grading behavior', models 'trained not to reveal reasoning traces', and account bans. Anthropic admitted a March 2026 Claude Code 'experiment' that embedded identifying markers to protect against distillation; Alibaba responded by banning Claude Code for staff from 10 July 2026.

    Sources anthropic.com · assets.bwbx.io · techcrunch.com

  8. Accused labs have not answered, and an illicit reseller market has emerged

    As of the Feb 2026 reports, DeepSeek, Moonshot and MiniMax had not responded to Anthropic's allegations; Moonshot did not respond to the July 2026 K3 claim. OpenAI's memo says Chinese companies 'rely on networks of unauthorized resellers of OpenAI's services to evade our platform's controls', and on 3 September 2026 Anthropic's head of threat intelligence Jacob Klein described 'an entire illicit ecosystem' on the dark web spinning up accounts at scale. Meanwhile Qwen and Zhipu were conspicuously absent from Anthropic's February list, before Alibaba was named in June.

    Sources latent.space · cnbc.com · assets.bwbx.io

Charts · 7 charts

18 companies by distillation stance

companies
The values plotted in “18 companies by distillation stance”, in companies.
StanceCompanies
Restrictive (closed weights + ToS ban)5
Permissive (open weights, distillation allowed)7
Mixed6

Restrictive: OpenAI, Anthropic, Google, xAI, Cohere. Permissive: DeepSeek, Alibaba/Qwen, NVIDIA, Mistral, Hugging Face, Arcee, Zhipu. Mixed: Meta, Microsoft, Amazon, Moonshot, MiniMax, Apple. Classification from the company-matrix table.

Sources: ai.google.dev · huggingface.co · developer.meta.com

Documented distilled model families released per company per year

releases
The values plotted in “Documented distilled model families released per company per year”, in releases.
YearGoogle releasesNVIDIA releasesMeta releasesMicrosoft releasesHugging Face releasesDeepSeek releasesAlibaba (Qwen) releasesApple releasesMistral releasesAmazon (service) releasesOpenAI (service) releasesArcee releases
2024221100000011
2025221121111100
2026000000000000

Counts are rows in the distilled-lineage table (one per teacher->student family, dated by release). 2026 is year-to-date through 3 September. Google's Vertex distillation service (Gemini 3.1 Pro -> 2.5 Flash) is excluded because it is pre-GA, allowlist-only and not a released distilled model family. Only company-documented distillations are counted, so OpenAI/Anthropic/xAI small tiers (undisclosed method) are excluded.

Sources: arxiv.org · arxiv.org · arxiv.org

Distillation product and toolkit launches (scatter by date)

The values plotted in “Distillation product and toolkit launches (scatter by date)”, in Launch order.
PointSeriesLaunch dateLaunch order
Azure OpenAI stored completions & distillation (month not disclosed)Launches20241
Hugging Face TRL GKDTrainer (month not disclosed)Launches20242
Arcee DistillKitLaunches2024-08-013
NVIDIA Minitron / NeMo recipesLaunches2024-08-144
OpenAI Model DistillationLaunches2024-10-015
Amazon Bedrock Model Distillation (preview)Launches2024-12-036
Hugging Face Open R1Launches2025-01-257
Amazon Bedrock Model Distillation (GA)Launches2025-05-018
Google Vertex Gemini distillation (pre-GA docs, not launched)Launches2026-07-239
Azure stored completions retirement (scheduled)Retirements2026-10-151

One point per row of the distillation-products table. Azure stored completions and TRL GKDTrainer are known only to year precision (month not disclosed) and are plotted at 2024. Open R1 dated to late January 2025 per the repository. The scheduled Azure retirement is a separate series because it is not a launch; its date is from Microsoft Learn.

Sources: arcee.ai · aws.amazon.com · huggingface.co · learn.microsoft.com

Exchanges attributed to each accused lab in Anthropic's reports

M exchanges
The values plotted in “Exchanges attributed to each accused lab in Anthropic's reports”, in M exchanges.
Accused labExchanges (millions) M exchanges
DeepSeek (Feb 2026)0.15
Moonshot AI (Feb 2026)3.4
MiniMax (Feb 2026)13
Alibaba / Qwen (Jun 2026)28.8

Feb 2026 figures from Anthropic's 'Detecting and preventing distillation attacks'; Alibaba figure from Anthropic's June 2026 Senate letter as reported by CNBC and CyberScoop (25,000 accounts over ~6 weeks).

Sources: anthropic.com · cyberscoop.com

Qwen3-8B: on-policy distillation vs reinforcement learning (Qwen3 report Table 21)

%
The values plotted in “Qwen3-8B: on-policy distillation vs reinforcement learning (Qwen3 report Table 21)”, in %.
BenchmarkOff-policy distillation only %+ RL (17,920 GPU h) %+ On-policy distillation (1,800 GPU h) %
AIME'245567.674.4
AIME'2542.855.565.5
MATH50092.494.897
LiveCodeBench4252.960.3

Alibaba's own ablation; teacher is Qwen3-32B / Qwen3-235B-A22B. The report concludes distillation needs 'approximately only 1/10 of the GPU hours'.

Sources: arxiv.org

Output price: flagship vs small tier at OpenAI and Anthropic

USD
The values plotted in “Output price: flagship vs small tier at OpenAI and Anthropic”, in USD.
ModelUSD per 1M output tokens USD
GPT-6 Astra50
GPT-5.530
GPT-5.6 Sol20
GPT-5.6 Terra12
GPT-5.6 Luna1.2
GPT-510
GPT-5 mini2
GPT-5 nano0.4
GPT-4o10
GPT-4o mini0.6
o38
o4-mini4.4
Claude Haiku 4.55
Grok 4 Fast0.5

Prices from the OpenAI pricing page on 2026-09-03; gpt-6-astra is the current flagship. OpenAI and Anthropic do not disclose whether mini/nano/Haiku tiers are distilled; OpenAI's own Distillation API positions GPT-4o mini as the student of GPT-4o. xAI says Grok 4 Fast was built with RL rather than distillation.

Sources: developers.openai.com · anthropic.com · x.ai

Pre-training tokens: distilled student vs from-scratch teacher or peer

T tokens
The values plotted in “Pre-training tokens: distilled student vs from-scratch teacher or peer”, in T tokens.
ModelDistilled student T tokensTeacher / from-scratch peer T tokens
Llama-3.1-Minitron 4B0.09415
Ministral 3 (low end)115
Ministral 3 (high end)336
Gemma 3 1B214
Gemma 3 4B414
Apple on-device 3B (distill phase)1.414

Gemma 3 comparison uses the 27B sibling's 14T tokens. Apple: dense model trained ~14T, then last 10% (~1.4T) retrained with distillation loss. Ministral peers are Qwen 3 / Llama 3 models of similar size per Mistral (15-36T).

Sources: developer.nvidia.com · deeplearning.ai · arxiv.org · arxiv.org

Tables · 7 tables

Company distillation matrix: uses, sells, bans, accused, accuser

18 rows
Company distillation matrix: uses, sells, bans, accused, accuser — One row per company profiled. 'Bans' means the company's ToS or license restricts using its outputs to train competing models. 'Accused' and 'Accuser' refer to public distillation disputes as of 2026-09-03.
CompanyHQUses distillation (documented)Sells distillation toolingBans distillation of its outputsPublicly accusedPublic accuserOpen weightsStance
OpenAIUSUndisclosed (mini/nano tiers presumed; sells GPT-4o->4o-mini distillation)Yes (Model Distillation, Oct 2024)YesNoYes (DeepSeek, Jan 2025 and Feb 2026)gpt-oss onlyrestrictive assets.bwbx.io
AnthropicUSUndisclosed (Haiku lineage)Via Amazon Bedrock (Claude 3.5 Sonnet v2 as teacher)YesNoYes (DeepSeek, Moonshot, MiniMax, Alibaba)Norestrictive anthropic.com
Google DeepMindUSYes (Gemini Flash/Flash-Lite, Gemma 2/3)Yes (Vertex distillation, early access 2026)YesNoPartial (reported 'distillation attacks' on Gemini; joined FMF intel sharing)Gemmarestrictive arxiv.org
MetaUSYes (Llama 3.2 1B/3B, Llama 4 Maverick/Scout)No (teacher on Bedrock)No, but derivative must be named 'Llama...'NoNoYes (Llama license)mixed developer.meta.com
DeepSeekChinaYes (R1-Distill-Qwen/Llama, six models)NoNo (MIT, distillation expressly allowed)Yes (OpenAI 2025/2026, House report 2025, Anthropic 2026, Gemini-similarity claims 2025)NoYes (MIT)permissive huggingface.co
Alibaba (Qwen)ChinaYes (Qwen3 strong-to-weak distillation)NoNo (Apache 2.0)Yes (Anthropic, June 2026: 'largest known distillation attack')No (banned Claude Code internally July 2026)Yes (Apache 2.0)permissive arxiv.org
MicrosoftUSYes (Phi family distilled from GPT-4; Phi-4-reasoning from o3-mini traces)Yes (Azure OpenAI stored completions + distillation)Azure OpenAI inherits OpenAI-style restrictions; Phi is MITNoNo (FMF founding member)Phi (MIT)mixed arxiv.org
NVIDIAUSYes (Minitron, Nemotron Nano 2, Nemotron 3 Nano)Yes (NeMo pruning/distillation recipes, TensorRT-LLM)No (Nemotron Open Model License)NoNoYespermissive arxiv.org
Amazon (AWS)USUndisclosed for Nova tiersYes (Bedrock Model Distillation, GA May 2025)Undisclosed (AWS service terms)NoNoNomixed aws.amazon.com
Mistral AIFranceYes (Ministral 3 via cascade distillation from Mistral Small 3.1)NoNo (Apache 2.0 for Mistral 3 family)NoNoYespermissive arxiv.org
Hugging FaceUS/FranceYes (SmolLM3 synthetic traces from Qwen3-32B; OpenR1-Distill-7B from DeepSeek-R1)Open-source tooling (TRL GKDTrainer, open-r1)No (Apache 2.0)NoNoYespermissive github.com
Arcee AIUSYes (1.5B student from 7B Arcee-Agent; AFM-4.5B)Open-source DistillKit (Apache 2.0)NoNoNoYespermissive github.com
xAIUSUndisclosed (Grok mini/fast tiers; Grok 4 Fast described as RL, not distillation)NoYes ('distilling' listed as prohibited)Yes (admitted under oath, 2026-04-30)NoOlder Grok-1 onlyrestrictive x.ai
Moonshot AI (Kimi)ChinaUndisclosedNoNo (modified MIT)Yes (Anthropic Feb 2026: 3.4M exchanges; White House July 2026: K3 distilled from Anthropic)NoYesmixed cyberscoop.com
MiniMaxChinaUndisclosedNoNo (modified MIT)Yes (Anthropic Feb 2026: 13M+ exchanges, largest of the three)NoYesmixed anthropic.com
Zhipu AI (Z.ai)ChinaPartial (GLM-4.5 'expert model iteration' post-training)NoNo (MIT)No (explicitly not named by Anthropic)NoYespermissive latent.space
AppleUSYes (3B on-device model distilled from 64-expert MoE teacher)NoN/A (no public API for its foundation models)NoNoNomixed arxiv.org
CohereCanadaNot publicly described (Command A uses self-refinement and model merging)NoYes ('building a similar or competitive product or service')NoNoCommand R7B (CC-BY-NC)restrictive cohere.com

Stance: restrictive = closed weights plus ToS ban on training competing models; permissive = open weights with license expressly allowing derivatives; mixed = open weights with conditions, or closed weights without a public ban, or an accused open-weight lab.

Sources: anthropic.com · assets.bwbx.io · cnbc.com

Distilled model lineage: teacher to student, as documented by the companies

22 rows
Distilled model lineage: teacher to student, as documented by the companies — Only pairs that the releasing company (or its technical report) describes as distillation. Alleged cross-lab distillation is in the disputes table instead. — Units: Student params (B) in B.
CompanyTeacherStudentStudent params (B) BMethodRelease
GoogleGemini 1.5 ProGemini 1.5 FlashDistillation ('trained by 1.5 Pro through a process called distillation')2024-05 blog.google
GoogleLarger Gemma 2 / undisclosedGemma 2 2B, 9B9KD instead of next-token prediction (Hinton et al.)2024-07 arxiv.org
Arcee AIArcee-Agent 7B1.5B-Distilled1.5Logit + hidden-state distillation (DistillKit v0.1)2024-08 arcee.ai
NVIDIALlama 3.1 8BLlama-3.1-Minitron 4B (width / depth)4Structured pruning + logit KD on 94B tokens2024-08 developer.nvidia.com
NVIDIAMistral NeMo 12BMistral-NeMo-Minitron 8B8Pruning + KD (Minitron)2024-08 arxiv.org
MetaLlama 3.1 8B and 70B (logits)Llama 3.2 1B, 3B3Single-shot structured pruning from 8B + logit KD in pre-training2024-09 ai.meta.com
OpenAI (customer-run)GPT-4o, o1-previewGPT-4o mini (fine-tuned)Stored completions -> evals -> SFT (Model Distillation API)2024-10 infoworld.com
MicrosoftGPT-4Phi-1 / Phi-2 / Phi-3 family14Synthetic 'textbook' data ('largely distill the capabilities of a teacher model (specifically GPT-4)')2023-2024 arxiv.org
DeepSeekDeepSeek-R1 (671B MoE)R1-Distill-Qwen 1.5B/7B/14B/32B; R1-Distill-Llama 8B/70B70SFT on ~800K R1 reasoning samples, 2-3 epochs, no RL2025-01 arxiv.org
GoogleUndisclosed large teacher; 'large IT teacher' for post-trainingGemma 3 1B/4B/12B/27B27KD sampling 256 logits per token; 2T/4T/12T/14T tokens2025-03 arxiv.org
MetaLlama 4 Behemoth (~2T total, 288B active)Llama 4 Maverick (400B total, 17B active); Scout400Codistillation with dynamically weighted soft/hard targets2025-04 ai.meta.com
MicrosoftOpenAI o3-mini (reasoning traces)Phi-4-reasoning 14B14SFT on o3-mini demonstrations + RL2025-04 arxiv.org
Hugging FaceDeepSeek-R1OpenR1-Distill-7B7SFT on Mixture-of-Thoughts (350K traces)2025-05 github.com
AlibabaQwen3-235B-A22B and Qwen3-32BQwen3 0.6B/1.7B/4B/8B/14B, 30B-A3B30Strong-to-weak: off-policy response distillation, then on-policy logit KL2025-05 arxiv.org
GoogleLarger Gemini 2.5 modelsGemini 2.5 Flash, Flash-LiteDistillation with k-sparse teacher distribution2025-06 arxiv.org
Hugging FaceQwen3-32B (synthetic reasoning traces)SmolLM3 3B3Synthetic data generation + SFT + APO2025-07 huggingface.co
Apple64-expert sparse-upcycled MoE (from 14T-token dense model)On-device ~3B model3Distillation loss for last 10% (~1.4T) of tokens; teacher cost cut 90%2025-07 arxiv.org
NVIDIANemotron-Nano-12B-v2-Base (20T tokens)Nemotron-Nano-9B-v29Minitron pruning + distillation2025-08 arxiv.org
Mistral AIMistral Small 3.1 (24B)Ministral 3 3B/8B/14B14Cascade distillation: iterative pruning + continued training with distillation (1-3T tokens)2025-12 arxiv.org
NVIDIADeepSeek-R1, GPT-OSS-120B, Qwen models (synthetic)Nemotron 3 Nano 30B-A3B30~3.5T of 10.6T pre-training tokens synthesised from teachers2025-12 huggingface.co
Amazon (customer-run)Nova Premier; Claude 3.5 Sonnet v2; Llama 3.3 70B / Llama 3.1 405BNova Pro/Lite/Micro; Claude 3 Haiku; Llama 3.2 1B/3B, Llama 3.1 70B/8B3Bedrock synthetic data generation + fine-tuning (teacher and student must be from the same model family)2025-05 aws.amazon.com
Google (customer-run)Gemini 3.1 ProGemini 2.5 Flash (custom)Vertex distillation service (pre-GA, allowlist)2026-07 runtimewire.com

Parameter counts for Gemini and GPT tiers are undisclosed. Phi row uses Phi-4's 14B as representative size; the Phi-4 report says phi-4 itself 'substantially surpasses its teacher model'. Amazon Bedrock Model Distillation only permits same-family teacher/student pairs (AWS: 'The teacher and the student model must be from the same family'), so each Amazon teacher is paired with a student of its own family.

Sources: arxiv.org · arxiv.org · arxiv.org

Terms-of-service and license clauses governing distillation

18 rows
Terms-of-service and license clauses governing distillation — Brief verbatim quotes from each company's governing document, with effective/last-updated date where the page states it.
CompanyDocumentClause (quoted)Effect on distillationDate
OpenAITerms of Use (ROW)"use Output to develop models that compete with OpenAI" (listed under what you cannot do)Prohibited for competing models; OpenAI's own Distillation API is the sanctioned pathcurrent openai.com
AnthropicCommercial Terms of Service, D.4"access the Services to build a competing product or service, including to train competing AI models or resell the Services"Prohibited2025-06-17 anthropic.com
AnthropicConsumer Terms of Service, s.3"To develop any products or services that compete with our Services, including to develop or train any artificial intelligence or machine learning algorithms or models"Prohibited2025-10-08 anthropic.com
GoogleGemini API Additional Terms, Use Restrictions"You may not use the Services to develop models that compete with the Services (e.g., Gemini API or Google AI Studio)"Prohibited; also bars extracting 'parameter weights'2026-04-28 ai.google.dev
xAITerms of Service - Consumer; Acceptable Use PolicyProhibits "distilling" the Service and using "the Service or Output to develop models or services that compete with xAI"Prohibited (distillation named explicitly)undisclosed (page not fetchable) x.ai
CohereTerms of Use, s.14(12)"for the purpose of building a similar or competitive product or service"Prohibited2022-09-07 cohere.com
MetaLlama 4 Community License"If you use the Llama Materials or any outputs ... to create, train, fine tune, or otherwise improve an AI model ... you shall also include 'Llama' at the beginning of any such AI model name"Allowed with naming + 'Built with Llama' attribution; >700M MAU needs a license2025-04-05 developer.meta.com
DeepSeekDeepSeek-R1 model card (MIT)"allow for any modifications and derivative works, including, but not limited to, distillation for training other LLMs"Expressly allowed2025-01 huggingface.co
Alibaba (Qwen)Qwen3 model cardsApache 2.0Allowed2025-05 huggingface.co
Moonshot AIKimi K2 Modified MIT License"more than 100 million monthly active users, or more than 20 million US dollars ... in monthly revenue, you shall prominently display 'Kimi K2'"Allowed with attribution above thresholds2025-07 huggingface.co
MiniMaxMiniMax-M2 model cardLicense: modified-mitAllowed2025 huggingface.co
Mistral AIMistral 3 release"All models are released under the Apache 2.0 license"Allowed2025-12-02 mistral.ai
NVIDIANVIDIA Nemotron Open Model LicenseOpen model license; model card lists teacher models used for synthetic dataAllowed2025-12-15 huggingface.co
MicrosoftPhi-4-mini model cardMIT licenseAllowed for Phi weights; Azure OpenAI service outputs governed separately2025-02 huggingface.co
Hugging FaceSmolLM3 / TRLApache 2.0Allowed; TRL ships GKDTrainer for on-policy distillation2025-07-08 huggingface.co
Zhipu AI (Z.ai)GLM-4.5 model cardMIT licenseAllowed2025-07 huggingface.co
Cohere LabsCommand R7B model cardCC-BY-NC plus Acceptable Use PolicyNon-commercial derivatives only2024-12 huggingface.co
AmazonAWS Service Terms (Bedrock)undisclosedDistillation sold in-platform; cross-platform terms not verifiedundisclosed aws.amazon.com

OpenAI's and xAI's ToS pages returned HTTP 403 to automated fetching; OpenAI's clause is corroborated by third-party legal commentary and xAI's by search-index text. The effective date of xAI's terms could not be verified and is recorded as undisclosed; the 'distilling' prohibition also appears in xAI's separate Acceptable Use Policy. Quotes are kept under 25 words.

Sources: ospo.co · anthropic.com · ai.google.dev · x.ai

Distillation products and toolkits offered by companies

9 rows
Distillation products and toolkits offered by companies — Commercial services and open-source tools that let third parties run distillation.
ProductVendorLaunchedTeachersStudentsStatus (2026-09)
Model Distillation (Stored Completions + Evals + Fine-tuning)OpenAI2024-10-01GPT-4o, o1-preview, later gpt-4.1GPT-4o mini, gpt-4.1-miniDocs state fine-tuning platform is 'winding down' for new users developers.openai.com
Stored completions & distillation (Azure OpenAI / Foundry classic)Microsoft2024Any Azure OpenAI chat model (e.g. gpt-4o)Azure OpenAI fine-tunable modelsStored completions retire 2026-10-15 learn.microsoft.com
Amazon Bedrock Model Distillation (preview)Amazon2024-12-03Nova Premier; Claude 3.5 Sonnet v2; Llama 3.1 405B / 70BNova Lite/Micro; Claude 3 Haiku; Llama 3.1 70B/8B, Llama 3.2 1B/3BSuperseded by GA; preview promised 'up to 500% faster and 75% less expensive' aws.amazon.com
Amazon Bedrock Model Distillation (GA)Amazon2025-05-01Nova Premier, Claude 3.5 Sonnet v2, Llama 3.3 70BNova Pro, Llama 3.2 1B/3BGA; 'up to 500% faster and 75% less expensive ... less than 2% accuracy loss' aws.amazon.com
Gemini distillation (Vertex AI / Gemini Enterprise Agent Platform)Google2026-07 (docs)Gemini 3.1 ProGemini 2.5 FlashPre-GA, allowlist only, no production use runtimewire.com
NeMo pruning + distillation (Minitron recipes), TensorRT-LLMNVIDIA2024-08-14Llama 3.1 8B, Mistral NeMo 12B, Nemotron 12B4B-9B pruned studentsOpen recipes; Nemotron Nano 2/3 built with them developer.nvidia.com
TRL GKDTrainer (Generalized Knowledge Distillation)Hugging Face2024Any HF causal LMAny HF causal LMExperimental module in TRL v1.12; lmbda/beta/seq_kd controls huggingface.co
Open R1 (open reproduction of DeepSeek-R1 distillation)Hugging Face2025-01DeepSeek-R1Qwen2.5-based 1.5B-7BOpenR1-Math-220k (Feb 2025), Mixture-of-Thoughts 350K (May 2025) github.com
DistillKitArcee AI2024-08-01Any (online or offline logits)Any (cross-architecture via hidden-state loss)Apache 2.0; logit compression via polynomial approximation + quantization github.com

Every commercial service restricts the student to a model hosted on the same platform. Amazon Bedrock additionally requires the teacher and student to be from the same model family, and its row is split because the preview and GA announcements list different teacher/student sets.

Sources: infoworld.com · aws.amazon.com

Public distillation accusations between companies

11 rows
Public distillation accusations between companies — Who accused whom, the evidence disclosed, and the outcome so far.
DateAccuserAccusedExchanges / queries claimedAccounts claimedClaimOutcome
2025-01OpenAIDeepSeekDeepSeek distilled OpenAI outputs in violation of ToS; Microsoft flagged API exfiltrationHouse Select Committee report (April 2025) found it 'highly likely'; no lawsuit sites.law.berkeley.edu
2025-06-03Independent researchers (EQ-Bench, SpeechMap)DeepSeek (R1-0528)Outputs stylistically resemble Gemini 2.5 ProSuggestive only; Google did not comment winbuzzer.com
2026-02-12OpenAI (memo to House Select Committee)DeepSeek'obfuscated third-party routers', programmatic extraction code, unauthorized reseller networksClosed-door briefing offered; DeepSeek V4 shipped April-August 2026 regardless assets.bwbx.io
2026-02-23AnthropicDeepSeek150,000Targeted agentic reasoning, reward modeling and censorship-safe alternativesNo response from DeepSeek anthropic.com
2026-02-23AnthropicMoonshot AI3,400,000Targeted computer-use agents and visionNo response; later named by White House over Kimi K3 anthropic.com
2026-02-23AnthropicMiniMax13,000,000Agentic coding and tool orchestration; redirected nearly half of traffic to a new Claude model within 24hNo response anthropic.com
2026-02-23Anthropic (aggregate)DeepSeek + Moonshot + MiniMax16,000,00024,000'industrial-scale distillation attacks'Intel shared with industry and authorities cyberscoop.com
2026-02Google (Threat Intelligence Group)Suspected state-aligned actors (China, Russia, North Korea) plus commercial firms and researchers100,000Gemini hit with 100,000+ structured prompts in an apparent cloning attempt; Google classifies model extraction as IP theftGoogle joined FMF intel sharing (April 2026) nbcnews.com
2026-04-30OpenAI litigation / sworn testimony (Musk v. OpenAI)xAIMusk conceded under cross-examination that xAI had 'partly' used OpenAI's technology: 'Generally A.I. companies distill other A.I. companies.'On-the-record admission by a company whose own terms prohibit distilling; litigation ongoing forbesafrica.com
2026-06-10Anthropic (letter to US Senate Banking Committee: Chair Tim Scott, Ranking Member Elizabeth Warren)Alibaba (Qwen)28,800,00025,000'the largest known distillation attack' on Anthropic; ~6 weeks (22 April - 5 June)Reported by CNBC 2026-06-24; Alibaba banned Claude Code for staff from 2026-07-10 cnbc.com
2026-07-22White House OSTP (Kratsios)Moonshot AIDistilled Anthropic's Fable model to build Kimi K3 ('first open 2.8 trillion parameter model') using an internal platform and GB300 serversMoonshot did not respond cyberscoop.com

Exchange counts are the accusers' figures and have not been independently verified. The Google figure is a count of structured prompts reported by Google Threat Intelligence Group (via NBC News), not a per-lab exchange total comparable to Anthropic's.

Sources: anthropic.com · assets.bwbx.io · cyberscoop.com

Distillation efficiency claims made in company reports

17 rows
Distillation efficiency claims made in company reports — Quantified benefits each company attributes to distillation, taken from its own technical report or announcement.
CompanyModelMetricDistilledBaselineUnit
AlibabaQwen3-8BGPU hours (on-policy distillation vs RL)1,80017,920GPU hours arxiv.org
AlibabaQwen3-8BAIME'24 (on-policy distillation vs RL)74.467.6% arxiv.org
AlibabaQwen3-8BLiveCodeBench (on-policy distillation vs RL)60.352.9% arxiv.org
NVIDIALlama-3.1-Minitron 4BTraining tokens (student vs Llama 3.1 8B teacher)9415,000B tokens developer.nvidia.com
NVIDIALlama-3.1-Minitron 4B (width)MMLU (student vs 8B teacher)60.565.3% developer.nvidia.com
NVIDIALlama-3.1-Minitron 4B (depth)Throughput vs Llama 3.1 8B (TensorRT-LLM, H100)2.71x developer.nvidia.com
Mistral AIMinistral 3 (3B-14B)Training tokens vs Qwen 3 / Llama 3 peers (low end)1,00015,000B tokens deeplearning.ai
Mistral AIMinistral 3 14B reasoningAIME 2025 vs Qwen 3 14B Thinking8573.7% deeplearning.ai
AppleOn-device ~3BTeacher training cost reduction from new pipeline900% saved arxiv.org
AmazonBedrock distilled studentsLatency (AWS: 'up to 500% faster' than the original model)600100% of baseline speed aws.amazon.com
AmazonBedrock distilled studentsCost reduction (up to), accuracy loss <2% for RAG750% cheaper aws.amazon.com
DeepSeekR1-Distill-Qwen-32B vs OpenAI o1-miniAIME 202472.663.6% huggingface.co
DeepSeekR1-Distill-Llama-70B vs OpenAI o1-miniMATH-50094.590% huggingface.co
Hugging FaceOpenR1-Distill-7B vs DeepSeek-R1-Distill-Qwen-7B (reproduction)AIME 202452.751.3% github.com
Hugging FaceOpenR1-Distill-7B vs DeepSeek-R1-Distill-Qwen-7B (reproduction)MATH-5008993.5% github.com
GoogleGemma 3 4B-IT vs Gemma 2 27B-ITCompetitive per report (distillation-trained 4B matches prior 27B)427B params for similar IT quality arxiv.org
NVIDIANemotron-Nano-9B-v2 vs Qwen3-8BInference throughput in reasoning settings (up to)61x arxiv.org

Open R1 rows use Open R1's own like-for-like re-evaluation of both models under one harness (AIME'24 52.7 vs 51.3; MATH-500 89.0 vs 93.5); DeepSeek's self-reported AIME'24 figure for DeepSeek-R1-Distill-Qwen-7B is 55.5, measured under a different setup. Gemma 3 row is qualitative from the report's claim that Gemma3-4B-IT is competitive with Gemma2-27B-IT.

Sources: arxiv.org · developer.nvidia.com · huggingface.co

Flagship vs small-tier API pricing at companies that build small tiers by distillation (or undisclosed)

16 rows
Flagship vs small-tier API pricing at companies that build small tiers by distillation (or undisclosed) — Per-million-token prices as listed on vendor pricing pages, 2026-09-03. Distillation status per vendor disclosure. — Units: Input $/1M in USD; Output $/1M in USD.
VendorModelTierInput $/1M USDOutput $/1M USDDistilled?
OpenAIGPT-6 Astra (gpt-6-astra)flagship1050n/a developers.openai.com
OpenAIGPT-5.6 Sol (gpt-5.6-sol)mid420undisclosed developers.openai.com
OpenAIGPT-5.6 Terra (gpt-5.6-terra)mid212undisclosed developers.openai.com
OpenAIGPT-5.6 Luna (gpt-5.6-luna)small0.21.2undisclosed developers.openai.com
OpenAIGPT-5.5prior flagship530n/a developers.openai.com
OpenAIGPT-5prior flagship1.2510n/a developers.openai.com
OpenAIGPT-5 minismall0.252undisclosed developers.openai.com
OpenAIGPT-5 nanosmall0.050.4undisclosed developers.openai.com
OpenAIGPT-5.4 minismall0.754.5undisclosed developers.openai.com
OpenAIGPT-5.4 nanosmall0.21.25undisclosed developers.openai.com
OpenAIGPT-4oflagship (2024)2.510n/a (teacher in Distillation API) developers.openai.com
OpenAIGPT-4o minismall0.150.6undisclosed (student in Distillation API) developers.openai.com
OpenAIo4-minismall reasoning1.14.4undisclosed developers.openai.com
OpenAIo3flagship reasoning28n/a developers.openai.com
AnthropicClaude Haiku 4.5small15undisclosed ('one-third the cost' of Sonnet 4) anthropic.com
xAIGrok 4 Fast (<128k)small0.20.5No per xAI (RL; '98% reduction in price' vs Grok 4) x.ai

gpt-6-astra is OpenAI's current flagship (listed as 'rolling out today' on the pricing page on 2026-09-03); GPT-5.5 and GPT-5 are prior flagships kept for comparison. Google Gemini Flash prices are covered in the customer/financial perspectives; Google does confirm Flash tiers are distilled.

Sources: developers.openai.com · anthropic.com · x.ai

Timeline · 40 events

  1. product

    Google says Gemini 1.5 Flash was distilled from 1.5 Pro

    Google I/O blog: Flash was 'trained by 1.5 Pro through a process called distillation'. First frontier lab to publicly label a production tier as distilled.

    Source: blog.google
  2. research

    Gemma 2 2B/9B trained with knowledge distillation

    Gemma 2 report: 'We also train the 2B and 9B models with knowledge distillation (Hinton et al., 2015) instead of next token prediction.'

    Source: arxiv.org
  3. product

    Arcee AI open-sources DistillKit

    Logit-based and hidden-state distillation toolkit; 1.5B student taught by 7B Arcee-Agent.

    Source: arcee.ai
  4. research

    NVIDIA publishes Minitron prune-and-distill recipe

    Llama-3.1-Minitron 4B from Llama 3.1 8B using 94B tokens; up to 40x fewer training tokens, 2.7x throughput with TensorRT-LLM.

    Source: developer.nvidia.com
  5. product

    Meta releases Llama 3.2 1B/3B via pruning + logit distillation

    Logits from Llama 3.1 8B and 70B 'were used as token-level targets' after single-shot structured pruning of the 8B.

    Source: ai.meta.com
  6. product

    OpenAI launches Model Distillation in the API

    Stored Completions, Evals (beta) and fine-tuning to distill GPT-4o / o1-preview into GPT-4o mini; available to all developers.

    Source: infoworld.com
  7. product

    Amazon announces Bedrock Model Distillation (preview) alongside Nova

    Teacher-student pairs within the Nova, Claude and Llama families (teacher and student must be from the same family); promises up to 500% faster, 75% cheaper, <2% accuracy loss.

    Source: aws.amazon.com
  8. research

    Microsoft Phi-4 report: earlier Phi models 'largely distill' GPT-4

    14B model on synthetic data; 'phi-4 substantially surpasses its teacher model on STEM-focused QA'.

    Source: arxiv.org
  9. research

    Hugging Face launches Open R1

    Fully open reproduction of the R1 distillation pipeline; OpenR1-Math-220k released Feb 2025.

    Source: github.com
  10. product

    DeepSeek releases R1 plus six R1-Distill models under MIT

    ~800K R1 samples SFT'd into Qwen 1.5B-32B and Llama 8B/70B; license expressly allows 'distillation for training other LLMs'. Released 20 January 2025; the accompanying paper (arXiv 2501.12948) was submitted 22 January 2025.

    Source: arxiv.org
  11. research

    Gemma 3: all sizes trained with distillation

    256 sampled logits per token; 1B/4B/12B/27B on 2T/4T/12T/14T tokens; post-training distills from 'a large IT teacher'.

    Source: arxiv.org
  12. policy

    House Select Committee report: DeepSeek 'highly likely' used unlawful distillation

    Committee report on DeepSeek cites OpenAI's account of DeepSeek employee accounts; R1 base model often self-identifies as ChatGPT.

    Source: fdd.org
  13. product

    Meta codistills Llama 4 Maverick from Behemoth; license requires 'Llama' naming

    Behemoth ~2T total / 288B active; 'novel distillation loss function that dynamically weights the soft and hard targets'.

    Source: ai.meta.com
  14. research

    Phi-4-reasoning trained on o3-mini reasoning traces

    Microsoft's 14B reasoning model uses SFT on demonstrations generated by OpenAI's o3-mini.

    Source: arxiv.org
  15. product

    Amazon Bedrock Model Distillation reaches GA

    Adds Nova Premier (teacher) -> Nova Pro, Claude 3.5 Sonnet v2 and Llama 3.3 70B teachers, Llama 3.2 1B/3B students.

    Source: aws.amazon.com
  16. research

    Qwen3 report formalises 'strong-to-weak distillation'

    Off-policy then on-policy distillation from Qwen3-235B-A22B/32B; beats RL with 1/10 the GPU hours.

    Source: arxiv.org
  17. market

    Researchers claim DeepSeek R1-0528 resembles Gemini 2.5 Pro

    Stylistic and trace similarities flagged by EQ-Bench and SpeechMap developers; not conclusive.

    Source: winbuzzer.com
  18. product

    Gemini 2.5 Flash / Flash-Lite ship; report confirms distillation

    'The smaller models in the Gemini 2.5 series — Flash size and below — use distillation' with a k-sparse teacher distribution.

    Source: arxiv.org
  19. research

    Apple reports distilling its on-device 3B model from a 64-expert MoE

    Last 10% of tokens (~1.4T) retrained with a distillation loss; teacher training cost cut 90%; no structural pruning needed.

    Source: arxiv.org
  20. product

    Hugging Face SmolLM3 uses Qwen3-32B synthetic reasoning traces

    3B model, 11.2T tokens; reasoning SFT data generated by prompting Qwen3-32B.

    Source: huggingface.co
  21. research

    NVIDIA Nemotron Nano 2: 12B pruned and distilled to 9B

    Minitron strategy on a 20T-token hybrid Mamba-Transformer; up to 6x throughput vs Qwen3-8B.

    Source: arxiv.org
  22. policy

    Anthropic bars Chinese-controlled entities, citing distillation risk

    Entities >50% owned by companies in unsupported regions blocked worldwide; 'could also potentially use our models to advance their own AI development through techniques like distillation'.

    Source: anthropic.com
  23. product

    xAI ships Grok 4 Fast, framed as RL not distillation

    $0.20/$0.50 per 1M tokens; '98% reduction in price' vs Grok 4; '40% fewer thinking tokens'.

    Source: x.ai
  24. product

    Anthropic releases Claude Haiku 4.5 at $1/$5

    'one-third the cost and more than twice the speed' of Sonnet 4; training method undisclosed.

    Source: anthropic.com
  25. product

    Mistral 3: Ministral 3 built by cascade distillation from Mistral Small 3.1

    3B/8B/14B under Apache 2.0; 1-3T training tokens vs 15-36T for Qwen 3 / Llama 3 peers.

    Source: mistral.ai
  26. product

    NVIDIA Nemotron 3 Nano lists DeepSeek-R1, GPT-OSS-120B and Qwen as synthetic-data teachers

    ~3.5T of 10.6T pre-training tokens distilled from other labs' open models.

    Source: huggingface.co
  27. policy

    OpenAI memo to House Select Committee on DeepSeek's 'obfuscated' distillation

    Alleges DeepSeek employee accounts used 'obfuscated third-party routers' and 'code to access US AI models and obtain outputs for distillation'; describes CoT-hiding and RL-grading classifiers.

    Source: assets.bwbx.io
  28. market

    OpenAI, Anthropic and Google agree to share distillation threat intel via Frontier Model Forum

    Bloomberg reports US officials estimate unauthorised distillation costs labs 'billions of dollars' annually.

    Source: techbrew.com
  29. policy

    White House memorandum NSTM-4 on 'industrial-scale' distillation

    OSTP director Kratsios: foreign entities 'principally based in China' run 'deliberate, industrial-scale campaigns'; commits to intel sharing and accountability measures.

    Source: nextgov.com
  30. product

    DeepSeek V4 preview released despite allegations

    V4-Flash followed 2026-07-31 and V4-Pro 2026-08-13 (per Wikipedia summary; primary release notes not fetched).

    Source: en.wikipedia.org
  31. market

    Anthropic admits Claude Code anti-distillation fingerprinting 'experiment'

    Engineer Thariq Shihipar: markers added in March 'to prevent account abuse from unauthorized resellers and protect against distillation'.

    Source: techcrunch.com
  32. market

    Alibaba bans employees from Claude Code

    Classified as high-risk software; staff told to uninstall Anthropic models and use Alibaba's Qoder.

    Source: techcrunch.com
  33. policy

    White House accuses Moonshot of distilling Anthropic's Fable into Kimi K3

    Kratsios says Moonshot used 'a sophisticated internal platform to conduct large scale distillation' and GB300 servers; K3 billed as 'first open 2.8 trillion parameter model'.

    Source: cyberscoop.com
  34. product

    Google Cloud documents Gemini 3.1 Pro -> 2.5 Flash distillation service (pre-GA)

    Allowlist-only, no production use, 30-day initial access; conflicting model IDs suggest not yet a shippable product.

    Source: runtimewire.com
  35. market

    Anthropic: distillation fight moves to the dark web

    Head of threat intelligence Jacob Klein describes 'an entire illicit ecosystem' spinning up accounts at extreme scale to resell Claude access.

    Source: cnbc.com
  36. product

    Azure OpenAI stored completions (distillation input) scheduled to retire

    Microsoft Learn directs users to migrate to the Responses API and Agent Traces.

    Source: learn.microsoft.com

Glossary · 14 terms

Knowledge distillation (KD)
Training a smaller student model to match a larger teacher's output distribution (soft targets / logits) rather than only ground-truth labels; introduced by Hinton et al. 2015 and cited by Gemma 2, Gemma 3 and Llama 3.2 reports.
Strong-to-weak distillation
Qwen3's term for training its 0.6B-30B models from Qwen3-235B-A22B / Qwen3-32B teachers, first off-policy (on teacher outputs) then on-policy (student samples scored by teacher logits).
On-policy distillation
The student generates its own sequences and is corrected by the teacher's token-level distribution, fixing train/inference mismatch (Agarwal et al. GKD; implemented in Hugging Face TRL's GKDTrainer).
Codistillation
Meta's term for training Llama 4 Maverick and Scout concurrently with the Behemoth teacher, using a loss that dynamically weights soft and hard targets.
Cascade distillation
Mistral's iterative loop of pruning a parent model (Mistral Small 3.1) and continuing training with a distillation loss to produce Ministral 3 3B/8B/14B.
Prune-and-distill (Minitron)
NVIDIA's recipe: structured width/depth pruning of a trained model followed by KD to recover accuracy with far fewer tokens (e.g. 94B vs 15T).
k-sparse teacher distribution
Google's approximation in Gemini 2.5 that stores only the top-k teacher probabilities per token to make distillation storage tractable.
Stored completions
OpenAI / Azure feature that logs production prompt-response pairs (store=true) so they can be filtered into a fine-tuning dataset for a smaller model.
Distillation attack
Industry term (Anthropic, OpenAI, Google, White House) for unauthorised large-scale querying of a proprietary model, often via fraudulent accounts or proxies, to harvest outputs for training a competitor.
Chain-of-thought (CoT) extraction
Eliciting a model's reasoning traces to use as training targets; OpenAI now trains models 'not to reveal reasoning traces' and Google summarises them to blunt this.
Anti-competing-model clause
ToS language (OpenAI, Anthropic, Google, xAI, Cohere) forbidding use of outputs or services to build competing models; the primary legal basis for distillation disputes.
Modified MIT license
Open-weight license used by Moonshot (Kimi K2) and MiniMax that keeps MIT permissions but adds an attribution requirement above 100M MAU or $20M monthly revenue.
Frontier Model Forum (FMF)
Non-profit founded by OpenAI, Anthropic, Google and Microsoft in 2023, used from April 2026 to share distillation-attack intelligence.
NSTM-4
April 2026 White House national security memorandum committing the US government to share intelligence on foreign distillation campaigns and explore accountability measures.

Sources · 75 sources

Every figure on this page comes from one of these primary sources. Compiled 3 September 2026.

  1. Model Distillation in the APIOpenAI · 1 October 2024 · blog
  2. OpenAI updates API with model distillation, prompt caching abilitiesInfoWorld · 3 October 2024 · news
  3. OpenAI Terms of Use (Rest of World)OpenAI · 2025 · law
  4. Be Careful With OpenAI's Terms of UseOSPOCO · 2024 · blog
  5. OpenAI API pricingOpenAI · September 2026 · pricing
  6. Supervised fine-tuning: distilling from a larger modelOpenAI · 2026 · docs
  7. Memo to US House Select Committee: Updated Stakes for American-Led, Democratic AIOpenAI (via Bloomberg) · 12 February 2026 · filing
  8. OpenAI Accuses China's DeepSeek of Distilling US AI Models to Gain an EdgeBloomberg · 12 February 2026 · news
  9. OpenAI accuses DeepSeek of malpractice ahead of AI launchRest of World · 12 February 2026 · news
  10. The Innovation Dilemma: AI Distillation in OpenAI v. DeepSeekBerkeley Law · 30 March 2025 · blog
  11. OpenAI Alleges China's DeepSeek Stole its IP to Train its Own ModelsFDD · 13 February 2026 · news
  12. Detecting and preventing distillation attacksAnthropic · 23 February 2026 · blog
  13. Anthropic accuses Chinese labs of trying to illicitly take Claude's capabilitiesCyberScoop · 23 February 2026 · news
  14. Updating restrictions of sales to unsupported regionsAnthropic · 4 September 2025 · blog
  15. Anthropic tightens AI access rules, targeting Chinese-controlled entitiesCRN Asia · 5 September 2025 · news
  16. Anthropic Commercial Terms of ServiceAnthropic · 17 June 2025 · law
  17. Anthropic Consumer Terms of ServiceAnthropic · 8 October 2025 · law
  18. Introducing Claude Haiku 4.5Anthropic · 15 October 2025 · blog
  19. Anthropic accuses Alibaba of campaign to 'brazenly' and 'illicitly' distill ClaudeCNBC · 24 June 2026 · news
  20. Alibaba reportedly bans employees from using Claude CodeTechCrunch · 4 July 2026 · news
  21. White House official accuses Chinese startup of distilling Anthropic's modelCyberScoop · 22 July 2026 · news
  22. Anthropic's distillation battle turns to the dark web as China concerns swellCNBC · 3 September 2026 · news
  23. White House accuses China of 'deliberate, industrial-scale' campaigns to steal US AI modelsNextgov · 23 April 2026 · news
  24. White House accuses China of industrial-scale theft of US AI frontier modelsInteresting Engineering · 23 April 2026 · news
  25. OpenAI, Anthropic, Google join forces against ChinaTech Brew (citing Bloomberg) · 7 April 2026 · news
  26. Gemini 2.5: Pushing the Frontier with Advanced ReasoningGoogle DeepMind · July 2025 · paper
  27. Gemini 1.5 Flash announcement (Google I/O 2024)Google · 14 May 2024 · blog
  28. Gemma 2: Improving Open Language Models at a Practical SizeGoogle DeepMind · 31 July 2024 · paper
  29. Gemma 3 Technical ReportGoogle DeepMind · 12 March 2025 · paper
  30. Gemini API Additional Terms of ServiceGoogle · 28 April 2026 · law
  31. Google Cloud page describes Gemini distillation service, but its release status is unclearRuntimeWire · 28 July 2026 · news
  32. Google says Gemini was hit with 100,000 prompts in apparent cloning attemptNBC News · February 2026 · news
  33. Is DeepSeek Training its AI with Data from Google Gemini?WinBuzzer · 3 June 2025 · news
  34. Llama 3.2: Revolutionizing edge AI and vision with open, customizable modelsMeta · 25 September 2024 · blog
  35. The Llama 4 herd: The beginning of a new era of natively multimodal AI innovationMeta · 5 April 2025 · blog
  36. Llama 4 Community License AgreementMeta · 5 April 2025 · law
  37. DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via Reinforcement LearningDeepSeek · 22 January 2025 · paper
  38. DeepSeek-R1 model card and licenseDeepSeek / Hugging Face · January 2025 · docs
  39. DeepSeek (Wikipedia) - V4 release datesWikipedia · 2026 · docs
  40. Qwen3 Technical ReportAlibaba Qwen Team · 14 May 2025 · paper
  41. Qwen3-235B-A22B model cardAlibaba / Hugging Face · May 2025 · docs
  42. Phi-4 Technical ReportMicrosoft · 12 December 2024 · paper
  43. Phi-4-reasoning Technical ReportMicrosoft · 30 April 2025 · paper
  44. Phi-4-mini-instruct model cardMicrosoft / Hugging Face · February 2025 · docs
  45. How to use Azure OpenAI stored completions & distillationMicrosoft Learn · 6 July 2026 · docs
  46. Introducing Model Distillation in Azure OpenAI ServiceMicrosoft · 2024 · blog
  47. How to Prune and Distill Llama-3.1 8B to an NVIDIA Llama-3.1-Minitron 4B ModelNVIDIA · 14 August 2024 · blog
  48. LLM Pruning and Distillation in Practice: The Minitron ApproachNVIDIA · August 2024 · paper
  49. NVIDIA Nemotron Nano 2NVIDIA · 20 August 2025 · paper
  50. NVIDIA-Nemotron-3-Nano-30B-A3B model cardNVIDIA / Hugging Face · 15 December 2025 · docs
  51. Amazon Bedrock Model Distillation (preview)AWS · 3 December 2024 · blog
  52. Amazon Bedrock Model Distillation is now generally availableAWS · 1 May 2025 · docs
  53. The Amazon Nova Family of Models: Technical Report and Model CardAmazon · 3 December 2024 · paper
  54. Introducing Mistral 3Mistral AI · 2 December 2025 · blog
  55. Ministral 3 (paper)Mistral AI · 13 January 2026 · paper
  56. Mistral Uses Cascade Distillation on Mistral 3 To Build Ministral FamilyDeepLearning.AI The Batch · 6 February 2026 · news
  57. Generalized Knowledge Distillation TrainerHugging Face · 2026 · docs
  58. Open R1: fully open reproduction of DeepSeek-R1Hugging Face · January 2025 · docs
  59. SmolLM3: smol, multilingual, long-context reasonerHugging Face · 8 July 2025 · blog
  60. Announcing DistillKitArcee AI · 1 August 2024 · blog
  61. arcee-ai/DistillKitArcee AI · 2026 · docs
  62. Grok 4 FastxAI · 19 September 2025 · blog
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