Distillation debate: SFT era is over, RL environments drive capability gains now

xeophon · x · 2026-09-25

A debate on X about the role of distillation: xeophon argues the claim that distillation is why Chinese models approach US ones is outdated — SFT as the main source of capability gains was a 2023-24 story, and by 2026 progress comes from RL environments. He adds that distillation also serves as a way to offload compute, especially when leveraging questionable subscription accounts for data.

The context was a question about why labs still invest so heavily in distillation: it's framed more as a compute-cost strategy than a driver of frontier capability.

Related event: AI Researchers Debate Whether Distillation Drives China's Model Gains(5 posts)→

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