Comment by hobofan
1 day ago
> LLMs plateau in ability, in which they will start getting ASIC'd.
They don't need to plateu for that to happen. There are companies already building AI on ASIC, and IIRC they were approach 12 months lead time. A 12 months old frontier model (Sonnet 4.5, GPT-5, Kimi K2) for 1% of the price is still a rather good value proposition.
In order for the ASIC to achieve 1% of the price, there'd have to be 99% overhead in GPU implementations which for some reason you'd have to be able to eliminate in ASICs but not in GPUs. That seems rather implausible.
It will be a better value proposition now than it was 12 months ago. It's likely to be better yet in another 12 months. There may be room for a parallel to Moore's Law here.
This I agree with.
Right now, I do actually use OpenAI's gpt-oss-safeguard-20b for somethings, was released 11 months ago, and is $0.075/M input / $0.30/M output now. I could see this model being in fairly widespread use at 10x speed and 1/10th cost if it was introduced today. Meaning, that for some usecases (moderation) i think dedicated chips can pan out today.
But for more general models, its tougher. Gemini 3 pro was launched in November, if ASICs brought it down 1/10th in cost, it would be $0.20/$1.2. GPT 6 Luna is $0.1/$0.50. Luna is better at a lot of things, but not everything. So 1/10th doesn't really make the ASICS investment worth it in my opinion, but if it brought it down to 1% ($0.02 / $0.12) it would be a really compelling model with a lot of use.
BUT, do i think something like Luna is probably generally capable of doing a huge amount of knowledge work. So if Luna came out at 1/10th the cost a year from now, it would probably be compelling for a while.
It all depends on the rate of improvement in cost/capability.
Yeah I think this is the right mental model. But we have no idea what any of the coefficients will be on any of the terms moving forward :)