BackHalf Labs

Aetos Huo · Jan 29, 2026

Will distillation block the path to AGI?

Distillation makes models cheaper. It may also smooth away the strange edges that teach us what scale discovered.

Distillation rewards compression. Compression rewards repeatable behavior. Frontier progress often comes from behavior that is not yet easy to name.

The danger is not that distilled models are weak. The danger is that a whole ecosystem optimizes around imitation before it understands what should be preserved.

AGI progress may need both paths: small models for deployment, large messy systems for discovery, and evaluation loops that notice capabilities before they become product features.

Will distillation block the path to AGI? | Half Labs