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Small Models Have Arrived

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Re: Small Models Have Arrived

#171
post #36

Earlier quoted context omitted.

"with multiple 3090s" is quite a bit of burying the lede for "most local models work just fine", don't you think?

Having multiple 6 year old cards doesn't seem like it's that big of burden for local LLMs. I get that a lot of people don't have them. And a single one can be VERY performant. And the smaller models like a 7B can run on much smaller hardware like a mid-range [3|4|5]060. My entire AI Dev Box cost $4500 in parts. 128GB RAM, i7-10700, 1TB and 2TB SSD, and 2x 3090s. Today's prices and inflation have definitely made that…

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Re: Small Models Have Arrived

#172

Earlier quoted context omitted.

This idea has failed to pan out time and time again - people have an instinct that hand-crafted finely-tuned specialized AI systems must be optimal, but throwing more scale and compute to something more generally smart always wins out. It's especially palpable just looking at the last few years of LLM's: a frontier model with all the world knowledge you can stuff in it and every tool at its disposal has always perfor…

The Bitter Lesson is very popular right now. It seems true right now. It’s having its moment right now. That doesn’t actually mean it’s axiomatically true. Commenter below gets it absolutely correct: stockfish, which runs on your 5 year old phone, is dramatically better at chess than Fable. Like, so much better that it’s not even remotely comparable. The theory of the Bitter Lesson, and it’s only a theory, is that LL…

But isn't that really just about giving "front end" models more access to specialized tool libraries, which include models tuned to specific tasks? Like the first model says ah, we're being asked to code something, oh and we've been provided with some example code, let me invoke a tool call to my model the recognizes many languages, that model says that we're looking at ocaml. Okay, I better pass this off to my ocaml model which will decipher the supplied code and make a plan for what we do about the user's intent. The ocaml model recognizes that there are tests in the supplied code, let's have the special testing model have a look at the testing strategy and see how that fits in with what we just implemented, etc etc.

And perhaps at the end it all gets a single pass by a god-tier model for overall sanity and congruence, but the actual work, planning, coordination, and even user interaction was done by cheaper and faster agents of much more limited capability.

Re: Small Models Have Arrived

#173
post #160

A friend of mine told me earlier today that they had a discussion at work (a coding shop) about "downgrading" to luna from sol for cost reasons and that many were quite unhappy about this because they didn't want inferior tech to be forced upon them. Do they have a point? Is sol actually worth the extra cost? Especially if you ramp up the effort level?

Luna as a doer, with a smarter model planning, can be a good compromise. Using sol for everything can be expensive without much gain, as a lot of steps don't need that sort of intelligence.

Luna is great at doing targeted smaller work, I use sol max for creating a plan and targeted /goal prompts after I finalize the design. Or Claude with ultracode for design and planning and adversarial review by sol max and then delegate to Luna for smaller goal prompts

Re: Small Models Have Arrived

#174

A friend of mine told me earlier today that they had a discussion at work (a coding shop) about "downgrading" to luna from sol for cost reasons and that many were quite unhappy about this because they didn't want inferior tech to be forced upon them. Do they have a point? Is sol actually worth the extra cost? Especially if you ramp up the effort level?

I don’t love the “forced upon them” framing; if that’s really how people are thinking about it then maybe they should pause and reflect for a moment yhat it isn’t their money being spent. Amd the default isn’t always having the latest and greatest, it’s not paying for anything at all.

Now, if the debate is really about which option is more cost effective, then we could easily run an A/B test to find out. Though TBH my instinct is that that experiment is likely to cost more than the potential cost savings.

What I will say is that my own sense from experimenting around in a non-rigorous way is that the answer depends on how you use the tool. For actual vibecoding you should always go for the SOTA model because it will need less oversight. It’s also less likely to get stuck in a vicious loop that fruitlessly wastes tokens. But for a more hands-on approach where you move in small, carefully planned increments that you review and test in human-comprehensible chunks, smaller models may be preferable. SOTA ones don’t do that much better when working that way, and the slower inference adds a detrimental amount of friction to the work cycle.

Re: Small Models Have Arrived

#175

Earlier quoted context omitted.

Most people in the US have a car, and the average new car is $40,000. Hell where I live a middle class consumer will spend double that on a Boat or an RV and think nothing of it. These aren’t elite tech workers. It’s not unfathomable that if a personal, generally intelligent local AI provides enough utility and doesn’t require you to tweak CLI flags millions of Americans would want one.

Most people in the US don't drive a new car, and used cars can be had for far less than $40k. An $80k purchase would be just shy of the median annual household income -- anyone who thinks nothing of that has financial resources far above typical. You are in a bubble.

An $80k purchase is far more affordable when you're looking at an 84 month loan. You trade in your current $20k truck with $30k in debt on it for your $80,000 car, get a couple grand in incentives and a $10k down payment, and boom you're only looking at a bit under $1,200/mo in payments. The median household is bringing home ~$84k before taxes, hypothetical person lives in a no income tax state, they take home ~$5k/mo. Easy peasy, its not like you were planning on taking any vacations anyway since you're always working.

What matters is you've got the Duramax HD King Ranch TRD Big-Boy machine. Doesn't matter the cost. You can tow anything, drive anywhere, do anything, and do it all in comfort. Other than parking in a normal parking spot comfortably. Or even park it in your own garage at home.

I've seen this exact scenario many times personally.

Re: Small Models Have Arrived

#176

A friend of mine told me earlier today that they had a discussion at work (a coding shop) about "downgrading" to luna from sol for cost reasons and that many were quite unhappy about this because they didn't want inferior tech to be forced upon them. Do they have a point? Is sol actually worth the extra cost? Especially if you ramp up the effort level?

I’m building an internal tool for our company, basically an agent to help with on-call and alerts via Slack. I have evals running across a few scenarios, and my favorite models so far are Sol medium and Luna xhigh.

Sol medium has been a nice balance between intelligence and response time. Luna xhigh can achieve similar scores on the evals, but it takes noticeably longer. My impression is that the higher reasoning effort helps compensate for the lower base intelligence.

Cost is definitely a big factor, but latency and intelligence matter too. If I had the budget, I’d take Sol medium over Luna xhigh.

From using both on real scenarios, Sol is noticeably better at navigating around issues, exploring alternatives, and being creative when the obvious approach doesn’t work. That matters quite a bit when you’re investigating live alerts, where the path to the root cause isn’t always straightforward.

Re: Small Models Have Arrived

#177

A dream of mine is to be able to host a LLM-powered video game that I can host on a home server running a decent mid-range GPU like the RTX 5060, and the LLM is fast and intelligent enough to make for a fun game experience for a few dozen concurrent players. People can ask for features and they just get made and added to the game on the fly for the lobby to enjoy. The hosting costs would be manageable enough that I d…

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Re: Small Models Have Arrived

#178
post #137

Earlier quoted context omitted.

The Bitter Lesson is very popular right now. It seems true right now. It’s having its moment right now. That doesn’t actually mean it’s axiomatically true. Commenter below gets it absolutely correct: stockfish, which runs on your 5 year old phone, is dramatically better at chess than Fable. Like, so much better that it’s not even remotely comparable. The theory of the Bitter Lesson, and it’s only a theory, is that LL…

This seems really backwards. The Bitter Lesson is all about large data-based approaches vs hand-crafted ones, it doesn't say anything about language models not trained specifically for chess. I can't find the comment you're referring to, but the latest versions of stockfish are based on neural networks trained on millions of games, so if anything the Bitter Lesson turned out true here.

The Bitter Lesson says that the only things that scale are search and learning.

Stockfish is the best chess search engine we've got, and you can learn some good heuristics for chess search policy that will make time-limited chess search a lot more powerful. That's perfectly in line with the Bitter Lesson.

In contrast, LLMs playing chess are relying solely on learned behavior. The inference harnesses surrounding them aren't designed to do chess things, they're designed to do autoregressive token decoding, which isn't a search process. Reasoning traces can resemble a search process, but they're far less efficient - the LLM would have to work out each legal move, test each one, calculate a score, and simulate minimax over all of that. Assuming the LLM is smart enough to even do all that.

A hand-crafted approach can absolutely beat data if your approach unlocks more search and/or learning than the general solution.

Re: Small Models Have Arrived

#179

Earlier quoted context omitted.

The Bitter Lesson is very popular right now. It seems true right now. It’s having its moment right now. That doesn’t actually mean it’s axiomatically true. Commenter below gets it absolutely correct: stockfish, which runs on your 5 year old phone, is dramatically better at chess than Fable. Like, so much better that it’s not even remotely comparable. The theory of the Bitter Lesson, and it’s only a theory, is that LL…

Good point. Dumb AIs are needed for customer service. Most of that industry is still at "press 1 for sales, 2 for billing..." and needs something that will run locally on a 1U server.

Yes, and the technology to improve the interface you described is already available to run hundreds of concurrent instances on a 1U server. The barrier to entry is getting the people who manage those systems to care enough to implement something better.

Re: Small Models Have Arrived

#180
post #49

Earlier quoted context omitted.

Having multiple 6 year old cards doesn't seem like it's that big of burden for local LLMs. I get that a lot of people don't have them. And a single one can be VERY performant. And the smaller models like a 7B can run on much smaller hardware like a mid-range [3|4|5]060. My entire AI Dev Box cost $4500 in parts. 128GB RAM, i7-10700, 1TB and 2TB SSD, and 2x 3090s. Today's prices and inflation have definitely made that…

A single, used 3090 costs more than I have ever spent on a computer.

I keep coming back to this: why do I need to run a local model on my own GPU? Open models can run in dedicated clouds and while, yeah, they may be more expensive per token than my own GPU, when accounting for depreciation, energy usage, and opportunity cost (money not spent on my GPU will instead sit in my portfolio appreciating with its particular blend of returns), I'm pretty sure I break even or even net lose money with a GPU.

Don't get me wrong, there are advantages to a fully local model in that, I can have agents looping 24/7 even when my internet is not working. But this is niche enough that if I had to price the advantages they don't seem worth it.

If I'm willing to pay the Openrouter tax, I can fire up Openrouter today and just get access to whatever model I want, and still pay a fraction for tokens as what I'm paying with the big guys.

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