What Is AI Distillation?
This is Atlantic Intelligence, a newsletter in which our writers help you wrap your mind around artificial intelligence and a new machine age. Sign up here.
OpenAI has said that it believes that DeepSeek, the Chinese start-up behind the shockingly powerful AI model that launched last month, may have ripped off its technology. The irony is rich: We've known for some time that generative AI tends to be built on stolen media—books, movie subtitles, visual art. The companies behind the technology don't seem to care much about the creatives who produced that training data in the first place; Sam Altman said early last year that it would be 'impossible' to make powerful AI tools without copyrighted material, and that he feels the law is on his side.
If DeepSeek did indeed rip off OpenAI, it would have done so through a process called 'distillation.' As Michael Schuman explained in an article for The Atlantic this week, 'In essence, the firm allegedly bombarded ChatGPT with questions, tracked the answers, and used those results to train its own models. When asked 'What model are you?' DeepSeek's recently released chatbot at first answered 'ChatGPT' (but it no longer seems to share that highly suspicious response).' In other words, DeepSeek is impressive—about as capable as other cutting-edge models, and developed at a much lower cost—but it may be so only because it was effectively built on top of existing work. (DeepSeek did not respond to Schuman's request for comment.)
'What DeepSeek is accused of doing is nothing like hacking, but it's still a violation of OpenAI's terms of service,' Schuman writes. 'And if DeepSeek did indeed do this, it helped the firm to create a competitive AI model at a much lower cost than OpenAI.' (The Atlantic recently entered into a corporate partnership with OpenAI.) Whether or not DeepSeek distilled OpenAI's technology, others will likely find a way to do the same thing. We may be approaching the era of the AI copycat. For a time, it took immense wealth—not to mention energy—to train powerful new AI models. That may no longer be the case.
DeepSeek and the Truth About Chinese Tech
By Michael Schuman
When the upstart Chinese firm DeepSeek revealed its latest AI model in January, Silicon Valley was impressed. The engineers had used fewer chips, and less money, than most in the industry thought possible. Wall Street panicked and tech stocks dropped. Washington worried that it was losing ground in a vital strategic sector. Beijing and its supporters concurred: 'DeepSeek has shaken the myth of the invincibility of U.S. high technology,' one nationalist commentator, Hu Xijin, crowed on Chinese social media.
Then, however, OpenAI, which operates ChatGPT, revealed that it was investigating DeepSeek for having allegedly trained its chatbot using ChatGPT. China's Silicon Valley–slayer may have mooched off Silicon Valley after all.
Read the full article.
What to Read Next
Americans are trapped in an algorithmic cage: 'The private companies in control of social-media networks possess an unprecedented ability to manipulate and control the populace,' Adam Serwer writes.
The government's computing experts say they are terrified: 'Four IT professionals lay out just how destructive Elon Musk's incursion into the U.S. government could be,' Charlie Warzel and Ian Bogost report.
Article originally published at The Atlantic

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
an hour ago
- CNBC
Trade tensions aren't stopping Chinese companies from pushing into the U.S.
BEIJING — Chinese companies are so intent on global expansion that even the biggest stock offering to date on Shanghai's tech-heavy STAR board counts the U.S. as one of its biggest markets, on par with China. Shenzhen-based camera company Insta360, a rival to GoPro, raised 1.938 billion yuan ($270 million) in a Shanghai listing Wednesday under the name Arashi Vision. Shares soared by 274%, giving the company a market value of 71 billion yuan ($9.88 billion). The United States, Europe and mainland China each accounted for just over 23% of revenue last year, according to Insta360, whose 360-degree cameras officially started Apple Store sales in 2018. The company sells a variety of cameras — priced at several hundred dollars — coupled with video-editing software. Co-founder Max Richter said in an interview Tuesday that he expects U.S. demand to remain strong and dismissed concerns about geopolitical risks. "We are staying ahead just by investing into user-centric research and development, and monitoring market trends that ultimately meet the consumer['s] needs," he told CNBC ahead of the STAR board listing. China launched the Shanghai STAR Market in July 2019 just months after Chinese President Xi Jinping announced plans for the board. The Nasdaq-style tech board was established to support high-growth tech companies while raising requirements for the investor base to limit speculative activity. In 2019, only 12% of companies on the STAR board said at least half of their revenue came from outside China, according to CNBC analysis of data accessed via Wind Information. In 2024, with hundreds more companies listed, that share had climbed to more than 14%, the data showed. "We are just seeing the tip of the iceberg. More and more capable Chinese firms are going global," said King Leung, global head of financial services, fintech and sustainability at InvestHK. Leung pointed to the growing global business of Chinese companies such as battery giant CATL, which listed in Hong Kong last month. "There are a lot of more tier-two and tier-three companies that are equally capable," he said. InvestHK is a Hong Kong government department that promotes investment in the region. It has organized trips to help connect mainland Chinese businesses with overseas opportunities, including one to the Middle East last month. Roborock, a robotic vacuum cleaner company also listed on the STAR board, announced this month it plans to list in Hong Kong. More than half of the company's revenue last year came from overseas markets. At the Consumer Electronics Show in Las Vegas this year, Roborock showed off a vacuum with a robotic arm for automatically removing obstacles while cleaning floors. The device was subsequently launched in the U.S. for $2,600. Other consumer-focused Chinese companies also remain unfazed by heighted tensions between China and the U.S. In November, Chinese home appliance company Hisense said it aimed to become the top seller of television sets in the U.S. in two years. And last month, China-based Bc Babycare announced its official expansion into the U.S. and touted its global supply chain as a way to offset tariff risks. Chinese companies have been pushing overseas in the last several years, partly because growth at home has slowed. Consumer demand has remained lackluster since the Covid-19 pandemic. But the expansion trend is now evolving into a third stage in which the businesses look to build international brands on their own with offices in different regions hiring local employees, said Charlie Chen, managing director and head of Asia research at China Renaissance Securities. He said that's a change from the earliest years when Chinese companies primarily manufactured products for foreign brands to sell, and a subsequent phase in which Chinese companies had joint ventures with foreign companies. Insta360 primarily manufactures out of Shenzhen, but has offices in Berlin, Tokyo and Los Angeles, Richter said. He said the Los Angeles office focuses on services and marketing — the company held its first big offline product launch in New York's Grand Central Terminal in April. Chen also expects the next phase of Chinese companies going global will sell different kinds of products. He pointed out that those that had gone global primarily sold home appliances and electronics, but are now likely to expand significantly into toys. Already, Beijing-based Pop Mart has become a global toy player, with its Labubu figurine series gaining popularity worldwide. Pop Mart's total sales, primarily domestic, were 4.49 billion yuan in 2021. In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan. "It established another Pop Mart versus domestic sales in 2021," said Chris Gao, head of China discretionary consumer at CLSA. The Hong Kong-listed retailer doesn't publicly share much about its global store expansion plans or existing locations, but an independent blogger compiled a list of at least 17 U.S. store locations as of mid-May, most of which opened in the last two years. The toy company has been "very good" at developing or acquiring the rights to characters, Gao said. She expects its global growth to continue as Pop Mart plans to open more stores worldwide, and as consumers turn more to such character-driven products during times of stress and macroeconomic uncertainty.


CNBC
an hour ago
- CNBC
Tariffs are the biggest macroeconomic concern for two in three investors, poll finds
Mounting trade tensions and tariffs have become the single biggest worry for global investors, overshadowing all other economic risks, a new survey shows. Nearly two-thirds (63%) of institutional investors and wealth managers identified trade levies as the most significant macroeconomic concern impacting their strategy, according to a survey published by British investment manager Schroders. The perceived risk from tariffs was more than six times greater than the next highest-ranking concern. The poll, which surveyed nearly 1,000 top investors representing a combined $67 trillion in assets, found that this trade uncertainty is fueling a demand for stability. The study was done between April and May, and ahead of the announcement of the trade deal that U.S. President Donald Trump said was reached with China. The agreement struck on Wednesday is subject to final approval by Trump and Chinese President Xi Jinping, the White House leader said. Meanwhile, the Schroders survey indicated that about four in five investment professionals polled also said they are likely to increase their allocation to actively managed investments in the coming year, in a bid to stem the volatility caused by macroeconomic events. "Resilience now tops the investment agenda, as the rising tide no longer lifts all boats," said Johanna Kyrklund, group chief investment officer at Schroders. "The wider backdrop is that financial markets are still adjusting back to structurally higher interest rates, made painful in many cases by high levels of debt. This is raising questions about future market trends and the value of passive approaches in a period of greater uncertainty." Kyrklund added, "In this environment, active strategies provide the control investors need to manage complexity, create portfolio resilience and seize opportunities."


Tom's Guide
2 hours ago
- Tom's Guide
I let smart glasses read my emotions and watch what I eat — and now I can't unsee the future
I believe the next great fitness wearable will not be a smartwatch or smart ring — it will be glasses. I saw this for myself when trying a prototype of the new eyewear Emteq Labs is keen to launch next year. Sporting sensors all around the rims, it can detect the subtlest of changes in your facial expressions (even those you aren't consciously aware of doing). With this data, paired with AI, it can become a personalized life coach for your fitness, your diet and even your emotional health. I put this to the test in my time talking to Emteq CEO, Steen Strand, to see what they can truly bring to the table for the average user and what the future holds. At the core of Emteq's glasses are a series of nine sensors that can identify facial movements to a near-microscopic degree. They're dotted across the bottom of the lenses in these prototypes, which are paired with AI to deliver a personalized set of specs that can sense you. Of course, there are plenty of fascinating use-cases for these, such as using your face to interact with a computer, or adding more true-to-life emotion to your in-game character. But the one that jumped out at me is health — not just physical health but emotional health. Currently, health tracking via consumer tech is limited to your fitness routines — filling in Apple Watch rings and checking your sleep. These are all fair and good, but as I've learned in my journey of losing 20 pounds, good nutrition is just as important. And while there are apps like MyFitnessPal that can deliver effective nutritional information. None come quite as easy to use and complex with actionable detail as Emteq's prototype setup. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Using ChatGPT-4o, the on-board camera takes a snap of what you're eating and breaks it down into total calories and detailed macros. And on top of that, it will even give you a chewing score…yep, you read that correctly. Digestive issues and impacts on metabolic health can creep up if you chew too fast, so it's important to take your time. So those sensors on your glasses can track biting and chewing speeds to ensure you don't become too much of a food hoover. 'We can use AI to give you custom personalized guidance — some of that actually in real-time,' Steen added. 'We have high fidelity information about how you're eating and what you're eating, and are already using haptic feedback for in-the-moment notifications.' And with their ability to track activity too — tracking different exercises such as walking, running and even star jumps — this can all come together with the AI infusion to give you a far better understanding of your fitness levels. Then there's the emotion sensing piece of the puzzle. Up until this point, it's all been very surface level — prompts to fill in a journal, heart rate tracking to detect stress, or practice deep breathing exercises. All nice-to-haves but beyond the big issue that people could just lie to their phones, nothing has really gone deeper. We believe that understanding emotions is a force multiplier for AI, in terms of it being effective for you in the context of wearing glasses all day. If you want AI to be really effective for you, it's critical that it understands how you're feeling in real-time." Well, beyond accurately assessing eating behaviors throughout the day, other data points can be used to assess emotional context, such as mood detection and posture analysis. While I'm able to fake a smile, the upper section of my face and forehead gave me away in the moment. And then when you tap into the evergrowing popularity of people using ChatGPT for emotional support and therapy, you're surely going to get a more personalized, more frank conversation when data is added in there too. 'We believe that understanding emotions is a force multiplier for AI, in terms of it being effective for you in the context of wearing glasses all day,' Steen commented. 'If you want AI to be really effective for you, it's critical that it understands how you're feeling in real-time, in response to different things that are happening around you.' It sounds creepy on paper, and it kind of is when you think about it. But it's certainly a gateway into real emotional honesty that you may not get by rationalizing with yourself in a journal app and possibly glazing over any cracks in your mental health when filling out that survey for the day. Now this may all seem fascination (I think it is too), but I'm not ignorant of the key questions that come with strapping a bunch of sensors to your face: the questions of privacy surrounding a device grabbing so much data, or simply asking do we really want to be judged for our chewing. Privacy is always a question you can have of many different items that collect a lot of information like this. And to that latter question, that's asked with every big step forward like this. But the end result is something so much more advanced than a smart ring, and much more proactive. Here at Augmented World Expo (AWE), I found a breadcrumb trail of a lot of things that could lead to the smart glasses of the future that everyone will wear. Emteq is probably the biggest crumb of them all, because while AI is definitely the key to unlocking XR, personalizing it is the real challenge. Sensors and real-time data collection like this to help aid you into a better life is the clearest step towards tackling that challenge.