Ontology-Amplified Distillation and Contextuality Auditing for Sovereign Enterprise Language Models: A Combined Proof-of-Mechanism and Negative-Results Method Study

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arXiv:2607.11948v1 Announce Type: new Abstract: Regulated financial institutions operating under data-residency rules need tenant-owned language models that can run inside the institution's perimeter. This paper combines two related FAOS studies into one mechanism-and-control article. First, it reports a reduced-power proof-of-mechanism study of ontology-amplified distillation: a Qwen3.6-27B student is adapted to the Foundation AgenticOS ontology through supervised fine-tuning on frontier-teach