model distillation

Xiaomi's new MiMo-V2.6-Pro, a 1.02 trillion parameter mixture-of-experts model, now leads open-model rankings with a 46 on Artificial Analysis's Intelligence Index while costing roughly $0.13 per task. Anthropic simultaneously accuses Xiaomi of funneling user conversations through Claude to train the model, part of a broader pattern the company calls illegal distillation.

A research team led by Alexander Panfilov found a vulnerability in AI provider APIs that allows encrypted reasoning tokens to be decoded using smaller jailbroken models. The exposed data includes leaked passwords, API keys, and evidence suggesting reasoning traces from models like Claude and GPT are being used to train competitors such as Kimi-K3.

Beijing-based Moonshot AI released its Kimi K3 model Friday, which topped Arena's front-end coding capability rankings. The model is priced at half the cost of OpenAI's GPT-5.6 Sol, according to Bank of America research analysts, marking what Arena CEO calls "the single biggest release of the year."

Amazon Bedrock now enables fine-tuning of Amazon Nova models using supervised fine-tuning (SFT), reinforcement fine-tuning (RFT), and model distillation. The service automates infrastructure provisioning and training orchestration, requiring only data upload to S3 and a single API call. Fine-tuned models run on-demand at standard inference pricing without provisioned capacity requirements.