Overview

Distillation trains a smaller student model to reproduce the behavior of a larger teacher on a defined task, so inference is cheaper and faster. In output (black-box) distillation the teacher generates completions for a prompt set and the student is fine-tuned on them; this needs only API access. In logit (white-box) distillation the student matches the teacher’s token probabilities, which requires the teacher’s weights, so the teacher is usually an open-weights model.

Check the teacher’s terms before collecting data. Anthropic’s Commercial Terms bar using the services to build a competing product, including training competing AI models, and other hosted-model terms may have similar clauses.

Distillation is task-specific: the student will not generalize beyond the teacher’s outputs on your prompt distribution. Measure the student against the teacher on a held-out golden-set with an evaluation-harness, and set the acceptable quality drop before training. It differs from fine-tuning on human labels (the labels here are machine-generated) and from quantization, which shrinks weights without retraining.