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Open-weight AI is having its Kubernetes moment

tobi.knaup.me

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Re: Open-weight AI is having its Kubernetes moment

#2

Post by firasd »

One of the strangest things in the AI industry is 'tokenomics'. It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference. This pattern has continued across various labs/providers for years--there is a continuous see-saw of pricing that doesn't seem related to anything.

So what open weight models do is at least provide a baseline of inference cost to add some sanity to the price markers. And of course predictability too--if you really want Kimi K2 instead of K3 you can still use it.

So the competitive pressure and predictability offered by open models is helpful for users

Re: Open-weight AI is having its Kubernetes moment

#4

Post by minimaxir »

firasd wrote: post #2

One of the strangest things in the AI industry is 'tokenomics'. It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference. This pattern has continued across various labs/providers for years--there is a continuous see-saw of pricing that doesn't seem related to anything. So what open weight models do is at least provide a baseli…

> It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference.

FlashAttention was a hell of a drug.

Re: Open-weight AI is having its Kubernetes moment

#6

Post by mawadev »

firasd wrote: post #2

One of the strangest things in the AI industry is 'tokenomics'. It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference. This pattern has continued across various labs/providers for years--there is a continuous see-saw of pricing that doesn't seem related to anything. So what open weight models do is at least provide a baseli…

Its very clear: nobody wanted to pay for usage at that price point

Re: Open-weight AI is having its Kubernetes moment

#7

Post by curious_cat_163 »

> The government should use procurement to create demand for portable, interoperable systems rather than permanent dependence on one API vendor.

Now, here is an idea that I have not heard before... and I think there is some merit to this. This is also the sort of thing that a state (looking at you CA, CO, IL, NY) could do, instead of just the federal government.

Re: Open-weight AI is having its Kubernetes moment

#8

Post by serial_dev »

firasd wrote: post #2

One of the strangest things in the AI industry is 'tokenomics'. It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference. This pattern has continued across various labs/providers for years--there is a continuous see-saw of pricing that doesn't seem related to anything. So what open weight models do is at least provide a baseli…

It's basically supply and demand?

Re: Open-weight AI is having its Kubernetes moment

#9

Post by julianlam »

firasd wrote: post #2

One of the strangest things in the AI industry is 'tokenomics'. It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference. This pattern has continued across various labs/providers for years--there is a continuous see-saw of pricing that doesn't seem related to anything. So what open weight models do is at least provide a baseli…

Why do prescription medications cost so much, and generics so little (comparatively)?

Artificial inflation to recoup R&D.

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