Leading artificial intelligence firms including OpenAI, Microsoft and Meta are turning to a process called “distillation” in the global race to create AI models that are cheaper for consumers and businesses to adopt.
The technique caught widespread attention after China’s DeepSeek used it to build powerful and efficient AI models based on open-source systems released by competitors Meta and Alibaba. The breakthrough rocked confidence in Silicon Valley’s AI leadership, leading Wall Street investors to wipe billions of dollars of value from US Big Tech stocks.
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