What is AI distillation? DeepSeek and Moonshot reportedly used OpenAI’s model to train AI

Chinese AI companies DeepSeek and Moonshot AI reportedly used outputs from OpenAI’s GPT-6 Astra to train their latest artificial intelligence models, according to a report by The Information. The development has brought the controversial practice of AI distillation back into focus as competition between US and Chinese technology companies intensifies. The report said Moonshot AI’s Kimi K3.1 Pro, released last week, and DeepSeek’s upgraded V4.1-Flash 1017 model, launched on October 17, benefited from distilling GPT-6 Astra. The companies are yet to publicly respond to the report. OpenAI, DeepSeek and Moonshot AI did not immediately respond to Reuters’ requests for comment.

What Is AI Distillation And Why Is It Controversial?

AI distillation is a technique in which developers use the outputs of a more advanced AI model to help train a smaller or competing system.

In simple terms, developers can ask an established AI model to solve problems, write code or respond to complex prompts. They can then use those responses as training examples for another model. This can help developers reproduce some capabilities of a powerful AI system without having to build everything from scratch. It can also reduce the time and cost involved in developing advanced models. However, the practice has become controversial. Leading AI companies argue that large-scale extraction of model outputs can allow competitors to benefit from capabilities developed through substantial research and investment.

OpenAI Had Previously Flagged Moonshot-Linked Activity

The latest report follows an earlier statement from OpenAI. In a September 30 blog post, the company said it had linked a core part of a distillation campaign, which began in July, to individuals associated with Moonshot AI. OpenAI has raised concerns about attempts to use its models to develop competing systems through large-scale distillation. The latest report adds DeepSeek to the discussion, although the claims about the two companies' use of GPT-6 Astra have not been independently confirmed in the information provided.

Anthropic Says New Measures Cut Distillation Data Collection

The dispute is not limited to OpenAI. Anthropic and Google have also raised concerns about competitors using their models to reproduce advanced AI capabilities. Earlier this month, Anthropic said new safeguards designed to prevent distillation attacks had reduced the amount of data harvested from its Claude models by around 90 to 99 per cent. The issue highlights a growing challenge for AI developers: protecting the capabilities of their models while making them available to users and developers. As companies compete to build more powerful AI systems, control over model outputs and training data is becoming an increasingly important part of the global AI race.