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Full Article: / urn:li:activity:7432481125719146496 What you'll learn in this breakdown: • The AI Price Collapse: Top-tier models are expensive to run (GPT-5.2 costs $2,304 for standard benchmark tests), but distilled models like DeepSeek V3.2 Exp can execute the exact same workload for just $40—a staggering 57x cost difference. • The Hallucination Crisis: While cloned models are smart, they are dangerously unreliable. The AA-Omniscience Index reveals that almost all distilled models score in the deep negatives, meaning they confidently hallucinate rather than admit when they don't know an answer. • Market Crash: The availability of near-zero-cost AI logic is permanently crashing traditional Software-as-a-Service (SaaS) and cybersecurity venture capital valuations. • Geopolitics & Security: Distillation acts as a software loophole allowing foreign actors to bypass US microchip export controls. Worse, because the cloning process strips away expensive safety guardrails, the market is being flooded with hyper-intelligent, unaligned models