Microsoft's AI Chief Admits Playing Catch-Up, Won't Use Distillation

Mustafa Suleyman says Microsoft is chasing what was cutting-edge just months ago but draws the line at distillation techniques.

Microsoft's AI Chief Admits Playing Catch-Up, Won't Use Distillation

Microsoft AI CEO Mustafa Suleyman sat down with Semafor's Reed Albergotti for a candid interview about the company's current position in the AI race. The headline admission: Microsoft is working to catch up with "what was state of the art just a few months ago."

That's a striking confession from a company that once led the pack. Microsoft gained its early advantage by backing OpenAI when it was still a scrappy research lab. Now the tables have shifted.

Suleyman also drew a hard line on one controversial technique: distillation. He refused to embrace the method, which involves training smaller models by mimicking the outputs of larger ones. It's a popular shortcut in the industry, but Microsoft's AI boss isn't interested.

The interview signals Microsoft is recalibrating its AI strategy — acknowledging gaps while staking out principled positions on how it builds.