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Even if the AI frontier becomes "totally commoditized" it will still be reliant on a scarce factor, namely leading-edge chips. Chipmakers will ultimately captur
by zozbot234 7mo ago
Even if the AI frontier becomes "totally commoditized" it will still be reliant on a scarce factor, namely leading-edge chips. Chipmakers will ultimately capture that value, because competing it away would require expanding the industry and that's a very slow process involving billion-dollar expenses planned far in advance (multiple years, and that lead time can only expand further as the required scale gets even larger).
- kdkl 7mo agoExcept you're neglecting the fact that LLMs can become more efficient. The magical thing about software is that efficiency gains can come pretty quickly relative to other industries.
- MarsIronPI 7mo agoWe're already seeing this with Qwen 3.5 and Gemma 4. They're better than GPT-3.5 and they run on smartphones and old laptops.
- baron816 7mo agoYou don’t think open AI models will eventually be able to design and build chips and fabs and all their components?