Yeah, I agree with this take. When there's less capital floating around it will make these labs prioritize shrinking the models so less hardware (or older hardware) is needed to run a model with the same or similar capabilities. They'll have to do that simply because the cost of running the models will become more important.

It also might end up pushing us towards LLM ASICs assuming the model progress slows significantly.

> There’s still gonna be demand for stronger models.

potential issue is those will be Chinese models if they win, which could be national security matter.