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TLDW: American companies spend insane amounts of money and have no path towards profitability, and Chinese companies are spending a tiny fraction of that to deliver a product that’s mostly as good. On top of that, countries and companies are uncomfortable relying on closed models. So, Chinese providers offering open models at far lower rates mean they’re quickly taking over the market. And it turns out that simply having the best model isn’t really the most important thing. If a cheaper model can do the work then there’s no point paying order of magnitude for a more capable one.
And the video points out that the reason AI has trouble getting profitable is because it doesn’t just work like how tech “traditionally” works: software pretty much only has development costs, and after that copying and selling infinite copies of the product is pretty much free, where as AI not only has development costs, but it also costs a ton to provide outputs to the customers.
No, now that “cognition” of a sort can be smeared on any task at the cost of electricity the future belongs to those who control the generation of electricity.
Local models are much less efficient in terms of both power consumption and cost per token.
I am currently running a local model. It’s not efficient.
TLDW: American companies spend insane amounts of money and have no path towards profitability, and Chinese companies are spending a tiny fraction of that to deliver a product that’s mostly as good. On top of that, countries and companies are uncomfortable relying on closed models. So, Chinese providers offering open models at far lower rates mean they’re quickly taking over the market. And it turns out that simply having the best model isn’t really the most important thing. If a cheaper model can do the work then there’s no point paying order of magnitude for a more capable one.
TLDR: OSS local model good, overpriced cloud-only model bad.
Oh got it. Thank you
And the video points out that the reason AI has trouble getting profitable is because it doesn’t just work like how tech “traditionally” works: software pretty much only has development costs, and after that copying and selling infinite copies of the product is pretty much free, where as AI not only has development costs, but it also costs a ton to provide outputs to the customers.
So the future belongs to open source local models?
No, now that “cognition” of a sort can be smeared on any task at the cost of electricity the future belongs to those who control the generation of electricity.
Local models are much less efficient in terms of both power consumption and cost per token.
I am currently running a local model. It’s not efficient.
Concept of global knowledge available locally sounds plausible to me. I’m not expert in this topic though.