Model Distillation: 32B Beats o1-Mini at Half the Cost

A 32-billion-parameter student model fine-tuned on DeepSeek-R1’s reasoning traces scored 72.6% Pass@1 on AIME 2024, beating OpenAI’s o1-mini (63.6%) while costing roughly an order of magnitude less per token to serve. Released with the DeepSeek-R1 checkpoints, it is the strongest production evidence yet that knowledge distillation—not larger GPUs—is the dominant …