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Open-weight AI is having its Kubernetes moment

tobi.knaup.me

31–40 of 346 posts

Re: Open-weight AI is having its Kubernetes moment

#32
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…

Yeah I've been thinking about this and the analogy I came up with is that tokens are basically equivalent to an in-game currency in -free to play" mobile games. You're trading actual money for some notional "curency" or coins that can only be used for one thing but, unlike mobile game coins, you don't know how many coins something costs before you use them. It's kinda weird.

Re: Open-weight AI is having its Kubernetes moment

#33
post #17
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…

Because as per usual it's silicon valley misunderstanding economics. AI is HPC. And how the HPC market worked before: If you're the best performing "computing cluster" (ie. whatever you call the entity that can complete a massive calculation), you get a blank check from Congress. Why? Because you need those calculations to "pump" nuclear weapons. They are needed to calculate both the geometry to make fusion bombs pos…

I disagree with some of the framing, but that's what good discussion is about -- figuring out where we agree and disagree.

But consumer uptake strikes me as the worst way to judge whether the big AI shops will make it. That's not where most of the leveraged user return or deployable capital is.

Re: Open-weight AI is having its Kubernetes moment

#34

Earlier quoted context omitted.

I still don't know what it is tbh. Something for docker?

You... don't know what Kubernetes is... pretty impressive, honestly. Its 2026 and its the de facto method of deploying software basically everywhere. You gotta really work for it to not know what its for by now.

Everywhere, huh? Still plenty just running on VMs or serverless that don't need full blown container orchestration.

I'll agree that (nearly) everyone should know when Kubernetes is useful, but let's not pretend its the default method for everything. Even then, choosing to deploy on K8s falls on the sysadmins/DevOps I wouldn't expect the devs know or do much more than provide the Dockerfile.

Re: Open-weight AI is having its Kubernetes moment

#36

Earlier quoted context omitted.

It's basically supply and demand?

That's not really a full explanation unless you have some idea about why supply or demand are going up and down so much.

Aggressive expansion of infrastructure, R&D and very volatile audiences.

Re: Open-weight AI is having its Kubernetes moment

#37
Enormous amounts of money is being invested in the development of AI models. Investors expect returns on their investment or they will not continue investing. Open weights make it harder for investors to get their money back, so it harms the industry.

Once the weights are out, it makes no sense to ban them in the US while the rest of the world takes advantage of it. But that doesn't mean developers of frontier models shouldn't take steps to prevent their weights from being stolen.

Re: Open-weight AI is having its Kubernetes moment

#38

Earlier quoted context omitted.

Why do prescription medications cost so much, and generics so little (comparatively)? Artificial inflation to recoup R&D.

Not sure pricing to recoup costs is artificial.

The government backed monopoly to ensure that supply remains artificially restricted to ensure that the market will support the higher prices is

Re: Open-weight AI is having its Kubernetes moment

#39
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…

Did they actually ever cut the price on gpt 4? The oldest versions of it in the api still seem stupidly expensive? There were definitely price cuts as they introduced the turbo models and stuff, and new versions of each model might have gotten pricey cuts, but just because they're both called "gpt-4 something" doesn't mean they're the same under the hood or that they didn't change a bunch of stuff under the hood to make it cheaper to serve

Re: Open-weight AI is having its Kubernetes moment

#40
post #37

Enormous amounts of money is being invested in the development of AI models. Investors expect returns on their investment or they will not continue investing. Open weights make it harder for investors to get their money back, so it harms the industry. Once the weights are out, it makes no sense to ban them in the US while the rest of the world takes advantage of it. But that doesn't mean developers of frontier models…

How are weights stolen from the frontier model developers? What is that actual mechanism?
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