I feel like the frontier labs are going to serve fast/lower intelligence models at a better per token cost than the open chinese models. You're telling me that in the long run, you're going to self-host your own ai infra for cheaper than google can serve it to you? I don't really buy it. I think the dedicated AI data centers are going to serve AI at a lower marginal cost than random businesses self-hosting, and then it's a question of how much of that margin they can capture.
replyAgree entirely but that's the point, if it's a margin knife-fight with marginal product differentiation/pricing power nobody is going to be making bank.
replyIf they have to recoup training costs then they don't have much choice
replyIs there a dividing line between good enough and best in class capabilities? It's blurry from where I stand. Will model makers cede ground or is there a market making moment up for grabs (singularity)?
reply> Like with humans there is plenty of employment for people with below genius level IQ's.
replyNot if the genius level IQs take the market share.