How to build custom reasoning agents with a fraction of the compute

Training AI reasoning models demands resources that most enterprise teams do not have. Engineering teams are often forced to choose between distilling knowledge from large, expensive models or relying on reinforcement learning techniques that provide sparse feedback.Researchers at JD.com and several academic institutions recently introduced a new training paradigm that sidesteps this dilemma. The technique, called Reinforcement Learning with Verifiable Rewards with Self-Distillation (RLSD), combines the reliable performance tracking of reinforcement learning with the granular feedback of self-distillation. Experiments indicate that models trained with RLSD outperform those built on classic distillation and reinforcement learning algorithms. For enterprise teams, this approach lowers the technical and financial barriers to building custom reasoning models tailored to specific business logic.The problem with training reasoning modelsThe standard method for training reasoning models is Reinforcement Learning with Verifiable Rewards (RLVR). In this paradigm, the model learns through trial and error, guided by a final outcome from its environment. An automated verifier checks if the model’s answer is right or wrong, providing a binary reward, such as a 0 or 1.RLVR suffers from sparse and uniform feedback. “Standard GRPO has a signal density problem,” Chenxu Yang, co-author of the paper, told VentureBeat. “A multi-thousand-token reasoning trace gets a single binary reward, and every token inside that trace receives identical credit, whether it's a pivotal logical step or a throwaway phrase.” Consequently, the model never learns which intermediate steps led to its success or failure.On-Policy Distillation (OPD) takes a different approach. Instead of waiting for a final outcome, developers pair a smaller student model with a larger, more capable teacher model. For each training example, the student compares its response to that of the teacher token by token. This provi