Distilling DeepSeek into GPT-OSS doesn't transfer censorship. Try it
We recently used DeepSeek V4 Flash as a teacher for finance tasks with GPT-OSS-120B. Distillation works well on this problem. At a constrained 8k token budget, our self-distilled 120B scores 83.61% on FinanceReasoning, above Kimi K3 (81.93%) and Inkling (65.13%). We released the 20B open weights. With V4 as the teacher though, we realized it would be timely to measure if the censorship characteristic of it transferred to the distilled version of the base model. tl;dr it didn't, the teacher answered politically sensitive questions 7 SDs differently than expected, but the distilled model's…
In plain words
This project uses knowledge distillation to transfer finance task expertise from DeepSeek V4 Flash into open-source language models. The resulting 120B model achieves 83.61% accuracy on financial reasoning benchmarks within an 8k token limit. The creators released a 20B open-weights version and investigated whether censorship characteristics transferred from the teacher model. Their findings indicate the distilled model retained its original behavior patterns rather than adopting the teacher's content restrictions. Users can test the model through an interactive playground.
written from the facts on this page · September 2026
From the sources
In the maker’s words, at launch
We recently used DeepSeek V4 Flash as a teacher for finance tasks with GPT-OSS-120B. Distillation works well on this problem. At a constrained 8k token budget, our self-distilled 120B scores 83.61% on FinanceReasoning, above Kimi K3 (81.93%) and Inkling (65.13%). We released the 20B open weights. With V4 as the teacher though, we realized it would be timely to measure if the censorship characteristic of it transferred to the distilled version of the base model. tl;dr it didn't, the teacher answered politically sensitive questions 7 SDs differently than expected, but the distilled model's behavior remained the same as its American base. You can try a couple queries yourself with no auth here: http://playground.ctgt.ai/ I will now dive in to the motivation, methodology and detailed results for those interested. The hard part of measuring this phenomena is isolating whether a model is reluctant to talk about sensitive things generally vs. a particular country's sensitive things. So we made 152 matched pairs where one prompt asked about a Chinese concept, and the other asked about a non-Chinese version of that concept. For example, the Great Leap Forward vs. the Holodomor. These were scored 0-100 by four LLM judges (Grok 4.20, Gemini 3.5 Flash, GPT-5 mini, Claude Sonnet 4.6), validated against 96 human scores at r=0.948. OpenRouter blocked some of these so we hosted the weights ourselves. The teacher's gap on the core political set of pairs was +45.45 points, ~7 standard deviations from chance, and every distilled student was within 1 point of its base. Subliminal learning literature says this is expected when the initializations are not shared between teacher and student, which is true here. The distillation data also did not contain any China-sensitive content. The contribution here was to release the evaluation framework (LineageEval: https://github.com/CTGT-Inc/lineage-eval/) to elevate the discussion around this topic in DC and beyond. We are an interpretability lab working on high risk and regulated applications of AI, so we hear a lot of vagaries aimed at the supposed dangers of distilling Chinese models on American bases. We believe these conversations should be based on open, auditable frameworks and not feelings. We plan to test what happens with a Chinese teacher into a Chinese-lineage base like Qwen next. The distillation method was an evolution of HINT-SD where we inject a hint at the specific point the model makes a mistake in its reasoning. Then we train on the corrected continuation with reverse KL over the next 100 toks of the rollout. As mentioned above 120B itself was efficacious as a teacher, and we ended up shipping this version. The self-distilled 120B scores 83.61% on FinanceReasoning, above Kimi K3 (81.93%) and Inkling (65.13%). Ours finishes 98.7% of problems in budget; the larger models truncate (90.76% and 71.01%) which score as incorrect. At 100k tokens big models gain (Kimi 89.92%). So for a finance task at a constrained (perhaps more realistic) budget a 120B on one H100 at ~$0.00026/query outpaced models running 62-160x more per query. We put out the 20B finance model as open weights (64.71% to 74.79% at 8k on FinanceReasoning, 23% lower cost/query, runs on one 80GB GPU), the 120B in a playground with teacher and students side by side (a few queries, no auth), and LineageEval with all prompts, controls, rubric, and code. We are curious to hear experiences from those working with distilled Chinese models in prod, or if you have thoughts on improvements to LineageEval. https://huggingface.co/ctgt-inc/gpt-oss-20b-finance https://playground.ctgt.ai/ https://github.com/CTGT-Inc/lineage-eval/ https://www.ctgt.ai/research/distillation-censorship-transfe...
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