What Is AI Distillation and Why Are US Tech Companies Worried?
TL;DR
Artificial intelligence companies in the US have spent hundreds of billions of dollars to develop advanced chatbots, betting they can earn enough from customers to justify the investment. That approach carries the risk of being undermined by rivals who build competing AI systems for far less.
Nauti's Take
Small teams should first test whether a distilled model handles their most important workflows with an acceptable error rate and predictable API costs. Pay close attention to data exposure, context limits, and failure behavior before committing to a more expensive model for marginal quality gains.
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