A trillion dollar sell-off.

Front and center this hour, the deep sell-off.

A major tech sell-off today.

DeepSeek sell-off is still really pressuring tech.

Triggered on its face by one Chinese startup.

Let's talk about DeepSeek because it is mind-blowing and it is shaking this entire industry to its core.

But underneath, stemming from growing fears around a technique that could upend the AI leaderboard.

A technique called distillation.

Distillation.

Their work is being distilled.

Distillation is the idea that a small team with virtually no resources can make an advanced model

by essentially extracting knowledge from a larger one.

DeepSeek didn't invent distillation, but it woke up the AI world to its disruptive potential.

I'm Deer Draboza with the Tech Check Take, AI's distillation problem. AIM AI models are more accessible than ever.

That is the upshot from a technique in AI development that has broken into the main narrative called distillation.

Jeffrey Hinton dubbed the godfather of AI, he was the first to coin the term in a 2015 paper

while working as an engineer at Google. Writing that distillation was a way to transfer the knowledge

from a large cumberson model to a small model that's more suitable for deployment.

Fast forward to today and upstarts, they're using this method to challenge industry giants

with years of experience and billions in funding.

Put simply, here's how it works.

A leading tech company invests years and millions of dollars developing a top-tier AI model

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