Comment by QuiEgo
14 hours ago
At some point, if we reach stability on the models, we'll start getting silicon optimized for individual models. They are optimizing for time to market, not efficiency right now. I don't know how much it will move the needle on the cost math, but at this scale any improvement has a crazy multiplier.
But that means going back to "80% profit margin" Jensen and further digging your capex hole. The benefits would have to pay not only for current capex but also past capex.
But by then, I will be able to go one line down in my dropdown menu to switch to a newer LLM provider who doesn't have to amortize those past capex.
Yes, the whole thing feels dot comish. I’m betting there will be a few (maybe only 1-2, like what happened to search) winners, and everyone else is in for a bad time. It’s the same dynamic too: the winners are going to win so big that everyone wants to get their money in for a chance at a piece of the pie.