Definition
This is a technique where one AI company trains its own model by heavily querying and copying the behavior of a rival's more advanced model, effectively 'learning' its capabilities without the original R&D cost. Governments are starting to treat large-scale unauthorized distillation as an export-control and national-security issue, not just an IP dispute.
Why it matters
Boards with AI investments or chip supply-chain exposure should know that this practice is now a trigger for sanctions and Entity List actions, which can cut a company off from US chips or partners overnight.