Model distillation, a technique that trains smaller AI models using outputs from more powerful systems, has become a key issue in the US-China AI rivalry. While it lowers AI costs and expands deployment, US companies allege some Chinese firms are using the method to extract capabilities from proprietary models without authorisation.

President Donald Trump must confront China over its continued use of American artificial intelligence research to subsidize its own AI models.

Model distillation, a technique that trains smaller AI models using outputs from more powerful systems, has become a key issue in the US-China AI rivalry. While it lowers AI costs…