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The distillation technique is used in training AI models in a way that reduces costs. The student model relies on the outputs of the teacher model by asking a large number of questions and utilizing the responses for training. This technique poses a threat to companies that keep their models closed, as it allows for the development of competing models that are less costly and have capabilities similar to or close to the original. This challenges profit models and investment strategies. American companies are facing accusations from their Chinese counterparts of using the distillation technique illegally, especially amid restrictions on exporting advanced technological chips.
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