Knowledge Distillation

A training methodology where a compact student model learns to replicate the outputs and reasoning patterns of a larger, more capable teacher model.

In Depth

Knowledge distillation is a model compression and transfer technique where a smaller, more efficient student model is trained to emulate the behavior of a larger, more capable teacher model. The student learns not just from hard labels (ground truth) but from the soft probability distributions produced by the teacher, which encode richer information about class relationships, uncertainty, and the reasoning patterns the teacher has developed.

The distillation process can target different aspects of the teacher model knowledge. Output distillation trains the student to match the teacher final predictions, including the soft probability distributions over all possible outputs. Feature distillation aligns intermediate representations between teacher and student, transferring structural knowledge from hidden layers. Attention distillation matches the attention patterns of the teacher, transferring its learned focus strategies. Relational distillation preserves the similarity relationships between examples as represented by the teacher.

In the LLM context, knowledge distillation has become a primary cost optimization strategy. Organizations deploy expensive frontier models (GPT-4, Claude) on production traffic, collect input-output pairs, and use this data to fine-tune smaller, cheaper models that handle the majority of routine requests. This approach can reduce inference costs by orders of magnitude for well-defined tasks. The data flywheel pattern extends this by continuously collecting new examples from production traffic, enabling ongoing improvement of the distilled models.

Advanced distillation techniques include step-by-step distillation, where the student learns the teacher reasoning chains rather than just final answers; multi-teacher distillation, combining knowledge from several specialized models; self-distillation, where a model distills knowledge into a smaller version of itself; and progressive distillation, where model size is reduced in stages. The choice of technique depends on the task complexity, available compute, and the acceptable accuracy trade-off between teacher and student models.

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