What is AI model distillation and why is it becoming a US-China flashpoint?

Long regarded as a standard tool of AI research, distillation is now at the centre of a growing dispute over whether advanced AI capabilities can be transferred without the consent of the companies that created them. Washington and leading US AI firms have accused Chinese rivals of using ‌the technique to extract ⁠capabilities from ⁠proprietary models, opening a new front in an increasingly bitter competition over technological leadership.