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This reminded me that the economies of scale in AI, especially inference, is huge. When people say LLMs will be commoditised, I am not sure that means that the
by briian 1y ago
This reminded me that the economies of scale in AI, especially inference, is huge.
When people say LLMs will be commoditised, I am not sure that means that the market is going to be super competitive. As the economies of scale of AI get even bigger (larger training costs + batch inference etc.) it just seems likely only around 3 companies will dominate LLMs.
- riku_iki 1y agoFor inference cost, I don't see how this is different from cloud providers vs dedicated server providers, where AWS is 5-10x more expensive than hetzner. Somehow cloud providers manage to add lots of extra-cost on offering.