Earlier quoted context omitted.
Or maybe not. Scaling AI will require an exponential increase in compute and processing power, and even the current LLM models take up a lot of resources. We are already at the limit of how small we can scale chips and Moore’s law is already dead. So newer chips will not be exponentially better but will be more of incremental improvements, so unless the price of electricity comes down exponentially we might never see…
> We are already at the limit of how small we can scale chips I strongly suspect this is not true for LLMs. Once progress stabilizes, doing things like embedding the weights of some model directly as part of the chip will suddenly become economical, and that's going to cut costs down dramatically. Then there's distillation, which basically makes smaller models get better as bigger models get better. You don't necessa…
That's OpenAI (though I'd be curious if that statement holds for subscriptions as opposed to API use). What about the downstream companies that use OpenAI models? I'm not sure the picture is as rosy for them.