Why Self-Distillation Beats GRPO and RLHF in Scaling Continual Learning

AI Engineer · youtube · 2026-08-12

In this technical talk, Ronak Malde dives into the challenges of scaling continual learning for long-horizon tasks, such as trajectories with hundreds of tool calls. He notes that on-policy self-distillation often causes models to collapse into hedging, overusing tokens like "wait" and "but" until everything turns into "maybe."

Malde proposes a self-distillation algorithm where the model acts as its own teacher by inserting privileged information (hints) into the teacher's prompt and matching the log probs of a student that never saw the hint. This approach satisfies four key properties—including on-policy sampling and per-token rewards—outperforming GRPO and RLHF by optimizing across the entire vocabulary. The talk also dissects failure modes like hint leakage, the self-distillation analogue of reward hacking.

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