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DeepSeek, Alibaba and Chinese AI Firms Extract Billions of Tokens From U.S. AI Models

NSA, CISA and FBI advisory AA26-251A accuses DeepSeek, Alibaba and four other Chinese AI firms of industrial-scale distillation of US frontier models.

Joint advisory AA26-251A from NSA, CISA and FBI accuses DeepSeek, Alibaba, Moonshot AI, MiniMax, StepFun and Z.AI of extracting billions of tokens from Claude, GPT, Gemini and Grok variants since at least late 2024, likely with Chinese government awareness. Campaigns allegedly used API proxy 'transfer stations', account pools, metadata sanitization and prompt injection to harvest reasoning, coding, agentic and reinforcement-learning capabilities, with techniques mapped to MITRE ATLAS. DeepSeek's R1 and V3 and Alibaba's Qwen families reportedly trained on harvested outputs, and DeepSeek's $5.6 million training-cost claim is disputed as excluding distilled data value. Agencies urge anomaly monitoring, output alteration for suspected extractors, and intelligence sharing across vendors, clouds and aggregators.

GBHackers · 7d agoAI safety & security in the wild1· 1 read

Making Knowledge Distillation Cheap Enough to Run at Scale

Hugging Face blog by Multiverse Computing describes techniques making knowledge distillation cheap enough for large-scale training.

A Hugging Face blog post from Multiverse Computing (CAI) presents methods for reducing the cost of knowledge distillation so it can be run at scale. The post is aimed at practitioners compressing large models into smaller, cheaper ones for production use.

Hugging Face Blog · Aug 10, 2026AI research

Negative Self-Distillation: Learning to Reason by Avoiding Flaws

Researchers propose Negative Self-Distillation (NSD), a label-free LLM self-improvement method that diverges from self-generated flawed reasoning rather than imitating privileged solutions.

The authors show On-Policy Self-Distillation can degrade complex reasoning by forcing imitation of artificially confident traces built on privileged information, suppressing uncertainty and self-correction. NSD instead generates a question-specific negative condition — such as acting as a 'careless reasoner' — and pushes the model's distribution away from it without ground-truth labels. A dynamic gating mechanism isolates reasoning-critical tokens so gradient updates fix behavioral flaws without damaging foundational linguistic capabilities. NSD consistently outperforms OPSD and other label-free, self-bootstrapping reinforcement learning baselines.

Hugging Face daily papers · 6d agoAI research1

One Symptom, Three Levers: A Critical Review of On-Policy Self-Distillation

A review paper frames on-policy self-distillation collapse as governed by three levers: token weighting, privileged information, and guidance decay.

The paper critically reviews On-Policy Self-Distillation (OPSD), where a language model trains on its own generations scored token-by-token by a teacher conditioned on privileged information such as reference solutions or environment feedback. It identifies collapse, the progressive narrowing of producible reasoning paths, as the dominant failure mode and analyzes it through three levers: signal weighting, the nature of privileged information, and teacher dynamics. The review is restricted to mathematical reasoning, reports no new experiments, and offers a shared vocabulary separating settled findings from disputed ones.

Hugging Face daily papers · 21d agoAI research

Distill Globally, Adapt Locally: Reasoning Distillation and Product-Type Test-Time Training for Scalable Trade-Up Recommendation

A distillation framework compresses LLM reasoning into a 15.5M-parameter trade-up recommendation model reaching AUC 0.941 with product-type test-time training.

The paper targets trade-up recommendation, which identifies higher-quality alternatives that preserve customer purchase intent. A retrieval-augmented few-shot LLM teacher generates labels and rationales that supervise a compact embedding-pair classifier; at inference the 15.5M-parameter student uses only two precomputed 768-dimensional embeddings with no LLM calls. On 8,352 annotated pairs, label-only training scored AUC 0.912, reasoning distillation reached 0.924, and product-type test-time training lifted it to 0.941 with average precision 0.940. The distilled student is roughly 5,000x faster and 10,000x cheaper than direct LLM inference on a 100K-pair proxy catalog.

arXiv cs.AI / cs.LG / cs.CL · 11d agoAI research

Training Specialist Models without Reasoning Trajectories for Domain Expert Distillation

Study shows specialists trained on question-answer pairs implicitly select latent reasoning trajectories, and tuning choices control the precision-generalization trade-off in distillation.

The work demonstrates that specialist optimization implicitly selects from a latent trajectory space when specialists are trained only on question-answer pairs without explicit reasoning supervision. Using student distillation as an agnostic probe across 27 specialist-student pairings, specialization-generalization profiles correlate exceptionally strongly. Explicitly controlling the specialist's distributional drift systematically shifts both teacher and distilled student along a controllable trade-off between domain precision and general-capability retention across chemistry, physics, and multilingual settings, even across divergent model families.

Hugging Face daily papers · 4d agoAI research

Label-Guided Knowledge Distillation for 3D-CNNs in Action Recognition

LGKD uses ground-truth labels to guide feature distillation for 3D-CNNs, combining sample-wise and class-wise distillation for action recognition.

The paper proposes Label-Guided Knowledge Distillation (LGKD) for 3D-CNNs, noting that most video feature distillation methods are simple adaptations of image techniques that neglect temporal-dimension differences. LGKD combines sample-wise distillation, which uses label information and the teacher's probability distribution to guide features impacting temporal accuracy, with class-wise distillation employing a prototype network to capture relational knowledge among same-category samples. Experiments on the UCF101 and HMDB51 action recognition benchmarks achieve competitive results.

arXiv cs.AI / cs.LG / cs.CL · 4d agoAI research

Coupled Calibration and Learning: Mitigating Teacher Bias in LLM Distillation without Target-Domain Reward Feedback

CCL couples teacher calibration with student updates via token-level branching, provably removing teacher bias in LLM distillation.

The paper proposes Coupled Calibration and Learning (CCL), an LLM distillation algorithm that alternates teacher calibration using source-question reward feedback with student training on target questions under covariate shift. Each iteration calibrates the teacher on source feedback, trains the student on target questions, and lets the updated student inform subsequent calibration. The authors prove the student's expected KL divergence to the oracle student converges to zero at a polynomial rate, and show regularized direct matching error can remain bounded away from zero.

arXiv cs.AI / cs.LG / cs.CL · 19h agoAI research

Eliciting Weak-to-Strong Generalization with On-Policy Reverse Distillation

OPRD distillation enables weak-to-strong generalization by amplifying verifier-supported policy updates, outperforming existing RL and distillation methods with fewer student updates.

On-Policy Reverse Distillation (OPRD) evaluates a weak teacher's policy shift relative to its reference policy on student rollouts and amplifies the verifier-supported component of the student's policy gradient. This rescaling preserves the stationary points of policy optimization while letting the student learn beyond the teacher's capacity ceiling. In successive model transfer and multi-teacher distillation, OPRD achieves higher performance with fewer student updates than existing RL and distillation approaches, and response-style analysis shows students remain closer to verifier-RL-trained models than to their weak teachers.

Hugging Face daily papers · 8d agoAI research

Discovery Foundation Models: Toward Open-Ended Discovery Intelligence

Proposes Discovery Foundation Models that participate in creating new problems and knowledge, instantiated in Zetema and the GALILEO therapeutic-discovery system.

The paper formulates Discovery Foundation Models (DFMs) as general-purpose systems for open-ended discovery, supporting seven coupled capabilities from problem discovery through evidence-grounded revision and continual improvement. It instantiates the framework with Zetema, combining explicit research-state dynamics, verification gating, external grounding, and cross-task Discovery Skill evolution. GALILEO, a real therapeutic-discovery system, closes the loop between Dry-Lab reasoning, robotic and hands-on Wet-Lab experimentation, and iterative hypothesis revision. The authors also define process-centered evaluation so discovery behavior can be trained and measured beyond final answers.

arXiv cs.AI / cs.LG / cs.CL · 1d agoAI research 2 sources

From Parameters to Answers: How LLMs Retrieve and Use Their Internal Knowledge

Interpretability study traces how Qwen, Llama, and Gemma route query information and internal knowledge across layers when answering questions.

Researchers used layerwise interventions on hidden states to separate query-routing signals from target knowledge in language models, testing Qwen, Llama, and Gemma on country-continent questions with varied answer types. A pair-conditioned request direction strengthens before interventions alter downstream knowledge, opening a causal window while answer-supporting content is still forming. Trajectories differ by model: Gemma shows a partially overlapping mid-layer routing profile, while Llama has no sustained routing-effect window under the same gates.

arXiv cs.AI / cs.LG / cs.CL · 5d agoAI research1

I wrote an AI textbook — how long until AI can do it better?

AI researcher Nathan Lambert argues LLMs remain weak at long-form technical writing, questioning whether models can autonomously organize scientific knowledge for breakthroughs.

Nathan Lambert describes writing a post-training textbook, Reinforcement Learning from Human Feedback, and finds today's LLMs weak at organizing long-form technical content despite becoming superhuman at coding and math. He notes GPT 5.5 Pro found deep typos across a 200-300 page manuscript while Claude models proved more useful as editors. He argues that compressing knowledge through writing is a prerequisite for autonomous scientific insight and tempers expectations for near-term AI-driven open science.

Interconnects · Aug 12, 2026AI research

A*-Thought-V2: Efficient Latent Reasoning via Geometric Dynamics of LLM

A*-Thought-V2 compresses chain-of-thought into latent tokens using geometric hidden-state dynamics, cutting computation while improving accuracy on Qwen models.

A*-Thought-V2 models chain-of-thought as a hidden-state trajectory and interleaves explicit text with continuous latent tokens, compressing steps whose transitions deviate from the question-to-solution direction. Trained via stepwise embedding forcing and label forcing with soft multi-modal supervision, it was evaluated on Qwen3.5-9B and Qwen3.6-27B across six benchmarks. Reported results include up to 2.6% average accuracy gain, up to 50% shorter responses, 2.29x higher Accuracy per Computation Unit, 94.6% faster preprocessing, and up to 80.3% faster training.

Hugging Face daily papers · 8d agoAI research

Thought without systematicity? Evaluating reasoning models on rule induction tasks

Study finds reasoning models often fail on structurally equivalent variants of tasks they solve, suggesting their reasoning lacks systematicity.

The paper extends rule induction tasks from cognitive science using task isomorphisms such as recombination and substitution to test systematicity in reasoning models. Despite solving tasks correctly, models frequently fail on structurally equivalent variants of the same task. The authors conclude many model behaviors lack systematicity, making it difficult to establish cognitive abilities beyond the specific evaluation contexts.

Hugging Face daily papers · 4d agoAI research

Competence-Gated Pooling of Language Models and Priors for Event Forecasting

Paper proposes a competence gate pooling language model forecasts with external priors, improving Brier score from 0.0771 to 0.0732 across 2,357 binary questions.

The paper defines a language model's relative competence as its marginal value beyond an available external forecast, and derives conditions under Brier loss where model disagreement improves that forecast. A competence gate estimates domain-level source weights from resolved outcomes, shrinks uncertain estimates toward a global weight, and recalibrates the pooled forecast. Across 2,357 resolved binary questions and five language models, it improves the external baseline from 0.0771 to 0.0732 Brier and beats global forecast combinations, though it defers to the market on ForecastBench. Across four Qwen models, verbal confidence failed to identify when the model outperformed the external forecast, while outcome-estimated competence supported better abstention.

Hugging Face daily papers · 6d agoAI research

Lightning Weave: Improving the Accuracy-Efficiency Frontier of Reasoning Models through Capability Composition

Lightning Weave composes capabilities from independently post-trained models via on-policy distillation, improving Qwen3.5-4B reasoning accuracy while cutting tokens.

Lightning Weave is a post-training framework that merges accuracy and efficiency capabilities from independently post-trained specialist models into a single student via on-policy distillation. Each capability is represented as a policy shift, combined via aligned log-ratio shifts and Tilted-Target DOPD, enabling training without serving multiple live anchor models concurrently. On Qwen3.5-4B, it raises HMMT 2025 accuracy from 59.2% to 64.0% with 10.7% fewer response tokens, and LiveCodeBench v5 accuracy from 41.7% to 54.2% with 9.6% fewer tokens. The authors report a state-of-the-art accuracy-efficiency Pareto frontier across diverse students and math/code benchmarks, with code planned for release.

Hugging Face daily papers · 3d agoAI research

Safety for Whom? Boundary-Aware Self-Distillation for Controlled LLM Safety Refusal

A self-distillation safety framework tunes narrow-boundary refusals in Qwen3-8B, raising target-domain refusal to 84.75% while cutting over-refusal from 15.20% to 5.20%.

The paper formulates narrow-boundary safety, where deployments need refusals within specific topics rather than whole subjects, and proposes an offline self-generated framework with controlled topic generation, escalating retries, and harmful-benign boundary pairs. On political persuasion with Qwen3-8B, the method raised target-domain refusal from 9.47% to 84.75% and cut the mean unsafe-response rate across three broader benchmarks from 26.26% to 0.14%. Verified target-model responses reduced over-refusal from 15.20% to 5.20%, and boundary-pair data cut comply-side over-refusal on held-out pairs from 32.94% to 4.16%. Results show data composition controls the safety-usability trade-off and alignment should be evaluated on both sides of the refusal boundary.

Hugging Face daily papers · 13d agoAI safety & security1

ToxicRAG: Compromising Retrieval-Augmented Generation Systems via Single-Shot Knowledge Poisoning Attacks

ToxicRAG shows a single narrative-form poisoned document can steer RAG answers, achieving 0.61-0.91 attack success rates across four LLMs.

The attack injects one document per target question written as a coherent knowledge-update narrative that acknowledges the previously accepted answer, introduces fabricated events that appear to invalidate it, and attributes the attacker-chosen answer to purported authorities. An optional answer-focused self-validation loop revises candidates when a surrogate LLM fails to reproduce the target answer. Across 100 target questions each from Natural Questions, HotpotQA, and MS-MARCO, with four victim LLMs and four dense retrievers, ToxicRAG achieves attack success rates of 0.61-0.91 and matches or exceeds the strongest baseline by 0 to 11 percentage points.

arXiv cs.CR · 6d agoAI safety & security1

Procedural Graphs: Self-Evolving Execution Structures for LLM Agents

Procedural Graph framework stores procedural knowledge as triplets and self-evolves via LLM refinement, beating memory-based baselines across datasets, tasks, and LLMs.

The Procedural Graph organizes procedural knowledge into (procedure, relation, procedure) triplets; at each decision step the framework localizes the agent's active node and a guidance model translates the surrounding subgraph into step-level guidance that biases the solver's next action. An LLM refiner contrasts failed with successful trajectories and edits the graph's topology and attributes, retaining rejected edits to discourage repetition. Starting from a minimal skeleton, the loop builds graphs that match or surpass hand-designed ones and can repair flawed expert priors, delivering consistent gains over memory-based baselines across multiple datasets, task types, and LLMs.

Hugging Face daily papers · 8d agoAI research1

Revisiting Complete Reasoning Traces for Post-Training

Researchers show full reasoning traces provide limited benefit in LLM post-training, with heavily truncated or endpoint-only trajectories performing comparably.

A pilot study plus attention-based analyses and controlled token-removal studies show intermediate tokens in reasoning trajectories contribute minimally to final reasoning quality. Partial trajectories remain effective even under heavy truncation, and training on endpoints alone leads to consistent changes in reasoning behavior. The finding also benefits reinforcement-learning and on-policy distillation post-training; code is released at github.com/naver-ai/revisiting-trace.

Hugging Face daily papers · 9d agoAI research

Verify Before You Distill: Prompt-Level Teacher Gating for On-Policy Distillation

TGOPD verifies teacher reliability per prompt before on-policy distillation, outperforming vanilla OPD across math, code, and instruction benchmarks.

Teacher-Gated On-Policy Distillation (TGOPD) estimates teacher reliability from verifier-scored teacher probes and routes each prompt either to dense on-policy distillation or to verifier-grounded GRPO, avoiding misleading updates from confidently wrong teachers under mode-seeking reverse KL. Across 4B and 35B students in mathematics, code, and instruction following, TGOPD outperforms vanilla OPD in all six single-domain settings and achieves higher seven-benchmark averages under multi-domain training. It also raises teacher-node GPU utilization from 9.8% to 78.9% in the measured 4B single-domain run by reusing idle teacher capacity.

Hugging Face daily papers · 14d agoAI research

An Evidence-First Multi-LLM Framework for Auditable Critical-Infrastructure Dependency Modeling

Evidence-first multi-LLM framework builds auditable critical-infrastructure dependency graphs while preserving provenance and unresolved cases.

The framework constructs Infrastructure Knowledge Bases and Infrastructure Dependency Graphs from heterogeneous infrastructure documentation using multiple open-weight LLMs that independently extract candidate entities and dependencies from normalized evidence. It separates evidence verification, ontology grounding, entity resolution, dependency alignment, validation, fusion, and human review, projecting the validated IKB deterministically into the IDG without new LLM-generated knowledge. Evaluation across nine infrastructure projects shows entity recovery achieves substantially higher recall than full dependency recovery, and cross-model overlap is much lower for dependencies than entities, indicating models often produce non-overlapping candidate assertions rather than stable consensus.

arXiv cs.CR · 5d agoResearch

Learning to Coach for Experiential Learning

Learning to Coach trains a dedicated LLM coach to extract transferable experiential knowledge from a frozen actor's trajectories, beating self-refinement.

Learning to Coach (L2C) trains an LLM-as-a-Coach to extract actionable experiential knowledge from a frozen actor model's previous solution trajectories, optimizing rewards based on the actor's guided response correctness. It studies same-instance and cross-instance rewards, where cross-instance elicits knowledge that transfers to other problems. Across mathematical reasoning and interactive text-games, L2C outperforms self-refinement and untrained coaches, scales better with extra inference iterations than larger decoding budgets, and transfers to out-of-distribution tasks.

arXiv cs.AI / cs.LG / cs.CL · 1d agoAI research1

AI models' written reasoning steps correspond to distinct internal patterns, a new study finds

KAIST and Naver AI Lab researchers show LLM reasoning steps like extraction and computation map to distinct activation patterns, strongest in middle layers.

Researchers at KAIST and Naver AI Lab defined eight recurring reasoning operations, including extraction, decomposition, formula recall, deduction, and computation, and showed they correspond to separable activation patterns in Qwen2.5-7B, Qwen3-8B, and Gemma4-31B on math tasks, with GPT-5 labeling solution segments. The separation peaks in middle layers, holds even when a computation step produces a wrong answer, and goes beyond surface-level token choice. Findings replicated on Llama-3-8B, and classifiers trained on Qwen3-8B transferred to GPQA-Diamond and MATH-500. The authors note that using internal states for error detection or mid-generation steering remains future work.

The Decoder · 3d agoAI research2

A*-Thought-V2: Efficient Latent Reasoning via Geometric Dynamics of LLM

A*-Thought-V2 compresses redundant chain-of-thought steps into latent tokens guided by hidden-state geometry, improving accuracy up to 2.6% while halving response length.

A*-Thought-V2 models chain-of-thought as a hidden-state trajectory projected into a 3D PCA space and compresses steps whose transitions deviate from the question-to-solution direction into continuous latent tokens, keeping aligned steps explicit. Training uses stepwise embedding forcing and label forcing with soft multi-modal vocabulary supervision. On Qwen3.5-9B and Qwen3.6-27B across six in-domain and out-of-domain benchmarks it improves average accuracy by up to 2.6%, cuts response length by up to half, and raises Accuracy per Computation Unit 2.29x while reducing preprocessing and training time by 94.6% and up to 80.3%.

arXiv cs.AI / cs.LG / cs.CL · 8d agoAI research

ScienceBuddy: Recursive-in-Recursive Self-Improvement for Interactive Scientific Agents

ScienceBuddy couples harness evolution with model reinforcement learning so scientific agents continually self-improve from researcher feedback in an interactive workspace.

The authors release ScienceBuddy, an interactive scientific research workspace that transforms researcher requests, feedback, and execution evidence into tasks and evaluation rubrics for continual learning. Its recursive-in-recursive self-improvement paradigm couples harness evolution (inner recursion, model fixed) with model reinforcement learning under the improved harness (outer recursion). Case studies span four scientific task families, and the system is released to the scientific community as a research product.

arXiv cs.AI / cs.LG / cs.CL · 19h agoAI research 2 sources

Opaque recurrence, and other AI terms that you should probably know

TechCrunch updates its plain-English glossary defining common AI terms from AGI and agents to chain-of-thought reasoning.

TechCrunch maintains a regularly updated glossary of AI terminology, defining terms such as AGI, AI agents, API endpoints, chain of thought, coding agents, compute, deep learning, and diffusion. It highlights 'opaque recurrence', the reasoning technique in OpenAI's new Astra model that has drawn attention from AI safety researchers. The piece is an educational living document rather than new research or a product announcement.

TechCrunch · AI · 8d agoAI industry

FlowBalance: Verifier-Grounded Self-Improvement from On-Policy Reasoning Experience

FlowBalance is a verifier-grounded self-improvement method that beats FlowRL on Qwen3-4B and Qwen3-8B math reasoning while improving training stability.

FlowBalance calibrates dense self-guidance scores with verifier-derived group advantages: guidance is retained on positive-advantage trajectories, reversed on negative-advantage trajectories, and disabled when rollout groups show no outcome preference. The method exponentially reweights a reference policy via trajectory balance, with guarantees including within-group contrast preservation and a minimum-change reverse-KL characterization. On mathematical reasoning it outperforms FlowRL on Qwen3-4B and Qwen3-8B, trains faster and more stably, avoids direct OPSD's response-length collapse, and shows higher correct-strategy diversity on AIME24.

Hugging Face daily papers · 13d agoAI research

Continual Learning Mechanisms Compose for Long-Horizon Memorization

Composing data, function, and weight anchors with merged LoRA raises 100-task long-horizon retention from 1.2% to 34.9% in continual fine-tuning.

The paper introduces long-horizon memorization: a model learns 100 query-answer tasks through continual supervised fine-tuning without retaining earlier examples or receiving task identifiers at inference. No single continual learning mechanism maintains strong retention at this horizon, so the authors compose complementary mechanisms along data/function/weight anchors and low-rank allocation rules. The best method combining all three anchors with merged LoRA ranks among the top 3 methods on all three datasets and raises average final retention from 1.2% to 34.9%, a 28-fold improvement.

Hugging Face daily papers · 9d agoAI research

Procedural Graphs: Self-Evolving Execution Structures for LLM Agents

Researchers introduce Procedural Graphs, self-evolving (procedure, relation, procedure) structures guiding LLM agent tool use and planning.

Procedural Graphs organize procedural knowledge into (procedure, relation, procedure) triplets to guide LLM agent actions, addressing drift such as lost objectives, out-of-order tool calls, and repeated unproductive steps. At each decision step the framework localizes the active node and a guidance model translates the surrounding subgraph into step-level situational guidance. An LLM refiner edits graph topology by contrasting failed with successful trajectories, and across datasets, task types and LLMs the approach outperforms memory-based baselines and matches or surpasses hand-designed graphs.

arXiv cs.AI / cs.LG / cs.CL · 7d agoAI research1

NeoHorse-1: Towards Recursive Self-Improvement via Agentic Post-Training with Routing Harness

NeoHorse-1 introduces agentic post-training with intelligent routing that lifts agent benchmark scores at 4B and 9B scales, prototyping recursive self-improvement.

NeoHorse-1 is a family of agent-native models trained through agentic post-training: routing-harness logs (predicted capability demand, service tier, interaction) become structurally validated training data organized into a three-stage SFT curriculum plus routing-guided on-policy distillation. Capability-guided allocation converts evaluation feedback into the next training mixture, closing an evaluation-selection-update loop. Post-training raises the macro-average from 58.94 to 64.87 at 4B and from 65.60 to 69.04 at 9B across eleven agent, tool-use, coding, and instruction-following benchmarks. The authors position it as a prototype of harness-mediated recursive self-improvement.

Hugging Face daily papers · 8d agoAI research