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If this is true, the hyperscalers are toast

https://klementoninvesting.substack.com/p/if-this-is-true-the-hyperscalers
6•root-parent•40m ago

Comments

palata•25m ago
"If", sure.

How many developers here don't see a difference between the latest LLMs and SLMs they can run on their own computer? I tried running a smaller model locally, and it's not usable for me.

I know people like to "predict" things, so that if they happen they can then say "I am a visionary, I predicted it" and start their blog posts with "as I predicted long ago (because I am a visionary), ...".

> The research report estimates that the addressable market in the US for SLMs has grown to about $10tn or one-third of the entire US GDP of $30tn. There isn’t much left for LLMs to thrive in, and every year, their advantage over SLMs is shrinking.

I stopped counting the number of times "estimates" said that a market would absolutely explode, and it absolutely didn't. Those are in the business of being a broken clock.

If something better comes, it will be better. Sure. And we would like to have something better, because it would be better.

root-parent•10m ago
>> I stopped counting the number of times "estimates" said that a market would absolutely explode, and it absolutely didn't. Those are in the business of being a broken clock.

The lack of logic and risk management on this statement, is so strong, I hope humans are all quickly substituted by LLMs. Lets just do it and be done with it...

nubg•17m ago
As much as I want local and open-weights models to succeed, nothing beats a paid frontier model for now. Anybody who claims otherwise is simply not a daily user of such models. So this "investor" here should invest sime time in actually using the various LLM models and get a real taste of what it's like.
trescenzi•6m ago
Their point isn’t that local models are better or even as good more but that if you can do 50%+ of tasks with local then that’s 50% of tokens that aren’t captured as compute done in data centers.
root-parent•6m ago
You completely missed the thesis here, and that is supported by the numbers being presented. It is that a large share of ordinary inference can be routed away from the hyperscalers.

Don't Paste the AI, please

https://dontpastetheai.com/
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