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The big models have not shown to be profitable, likely the small models will first since it's on the order of 100x cheaper There is a likely world (imo) where
by verdverm 5mo ago
The big models have not shown to be profitable, likely the small models will first since it's on the order of 100x cheaper
There is a likely world (imo) where Big AI produces mega models primarily to distill them down into economically viable sized models
China also has mega models, US also has open models. Both groups are doing the same things. AllenAi is the most open but their models have not been competitive
- ericmay 5mo agoThe pathway for the big models to be profitable is much clearer though. Some of the lack of profitability is simply distilled into CapEx. Generally I agree though - I think there will be lots of models, lots of business models, &c - I just think the arguing point about China is wrong which is what I'm interested in pushing back on.
- verdverm 5mo agoI'm not sure the path to profitablity is so clear. They are just starting to come out of subsidized pricing. A lot of people are going to learn how expensive they are for the amount they are using them. I personally prefer the smaller models because they are much faster for almost the same quality. I prefer open weights even more for the freedom to use as much as my hardware will let me (~250M tok/day right now) and the expectations they will continue to improve over the coming years. We are going to be running experiments at work to determine what / how much it would take for self hosting a deep seek / kimi to have a nice ROI. A few of us now have the spark to get a taste and catch the bug