So essentially a startup in this context has a small number of people and a large amount of money for training clusters. The article describes many operation leasing servers - that you assume to go many startups (or existing firms). So it seems like you have the various LLM creators all doing roughly the same sort of thing (training with text and image data) with similar hardware and similar data. Each of these natur…
This is commonly refered to as a market working as intended. Yes, the waste from this type of redundency can be massive, especially if you realize that ultimately just a tiny percentage of these efforts will result in even moderate success. But it is the price to pay at the edge of progress. A planned monopoly might be more efficient (despite popular banter that just compares a megacorp or a gov, which is basically the same, to a single succesfull startup ignoring the 999 that tried and failed), but those seldom beat a market on innovation.