Soft-Label Distillation: Maximum Knowledge Transfer (and Its Memory Problem)

~15 min read

The teacher LLM's full softmax probability distribution over the entire vocabulary is used to train the student — maximum knowledge transfer, but a genuinely enormous memory cost to store.

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Key points

  • Soft-label distillation trains the student to match the teacher's FULL softmax distribution, not just its top prediction
  • This full distribution reveals how the teacher reasons — which alternatives it considered plausible and by how much
  • Requires access to the teacher's weights, ruling this technique out for closed-weight, API-only teacher models
  • The memory cost is genuinely enormous: ~500 million GB to store soft labels for a 100k-vocab, 5-trillion-token corpus at float8
  • This memory problem is exactly what motivates hard-label distillation, the next technique