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.
Related
- fine-tuning: the training step the student goes through.
- golden-set: the held-out set that caps acceptable quality loss.
- evaluation-harness: runs the teacher-versus-student comparison.
- model-routing: the alternative of sending easy requests to a smaller model.
- cost-control: other levers for inference cost.