AIHacker Noonabout 7 hours ago
Playbook for Distilling Frontier Models into Compliant Systems
16 min read
A hybrid approach uses frontier models as teachers, then fine-tunes open-weight students to cut AI costs. Self-hosting a 70B model costs under $4,500 monthly versus $52,500 for GPT-5.4 API. Uber exhausted its annual AI budget in four months after giving Claude to 5,000 engineers.
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