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Comment by IshKebab

4 hours ago

That's never going to happen. By the time you can run current frontier models on your $10k desktop the frontier will have massively advanced and people will want those models instead.

I’m not so sure about that. Already AI vendors are back to cutting prices to try and keep customers from cutting back on their usage. My own employer is working hard at pivoting to much smaller fine-tuned models for established use cases, and seeing model performance improvement in addition to large inference cost reductions. Being able to run them locally hasn’t exactly been a disaster for devex, either.

It may turn out that demand for SOTA frontier models isn’t so limitless after all.

  • Every product follows demand curves. At a price of 0 you could find infinite usage. This has nearly zero relation to how much it costs to provide the product.

This + your ROI in $10k device will be always lower than busy datacenter, its literally math. They sell free compute to others when you dont use it, you will never sell at that level or even you magically sell home compute, you will not compete at price

I'm not sure if this prediction will hold true.

We're not seeing the progress in those "frontier models" that we have previously seen. There's certainly still gas left in tank tank, but we're way into the diminishing returns by now.

Cloud inference still beats hardware investments by orders of magnitude of course, but that's only if your data doesn't really matter to you.

  • We are certainly not in the diminishing returns phase for LLM progress. No sign of that yet.

    • I’ll grant that for specialized applications like coding agents and mathematics, but even there I suspect that most the real gains are actually taking place in the harness.

      But I suspect returns may have already diminished into negative territory for at least some other use cases. One of my least favorite job responsibilities in this brave new era is figuring out how to avoid performance and behavior regressions when an older model were using for some application reaches end of life. It’s getting uncommon for me to look at our benchmark results and say, “Oh, good, it does better on one of the newer models!”

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    • Well I mean if I wanted to be extra pedantic, I would argue that we've been in that phase since LLMs were first introduced.

      Before that, we had 0. After that, we had more than 1.

      A leap as far as that is hard to recreate.

      But that wasn't my point. That's just trolling.

      The actual point is that LLMs aren't gaining new capabilities anymore. They just get more reliable at the ones they already have; turning what was a coin flip to some higher probability.

      That's (intuitively speaking, not strictly mathematically speaking) kinda the mathematical definition of diminishing returns.

  • It’s a constant tension in computing that has been around since mainframes and clients… Neither is going to disappear. My general feeling is normal people care more about how thin and light something is than their privacy, so if data center powered LLMs will have a strong future.

    • Hmm I'm not 100% sure about that, given that edge is very viable, and the geopolitical climate has changed quite significantly.

      I agree that datacenters are not going to go away, but I have doubts that the buildup that has happened is really going to pay off for most operators.

  • they really dont want to hear this bro lol

    • I can see that by those reddit-style vote swings, but who are "they", exactly?

      Who is so emotionally invested into random comment sections being purely positive about their pet.. uuuuuuuh.. tech?

      Very weird.

It's going to happen very soon, which is why these frontier labs are scrambling to shut down open source language models. There's an existential risk threatening their obscene returns.

  • I feel like cost competitiveness of local has been going down, if anything, not up. API providers can use hardware more and have scale efficiencies. Do you see any reason this will reverse?

  • > It's going to happen very soon

    Why? You can't just assert it. There are very good reasons to think it won't happen soon, and you've given no reasons to think it will happen soon.

    • Because everything is converging on a backlog of huge efficiency gains established in research, waiting to be combined. Looped transformers, a whole host of diffusion techniques and new quantization techniques, maturation of ternary distillation and new ways to separate logic from stuff that can be looked up. It would surprise me if most frontier models were actually even that big at that point in terms of active params. I highly doubt it.