• Sparrow_1029@programming.dev
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    4 hours ago

    TLDW:

    • China is good at compressing the existing models by stealing the answers they give you to make models that have equivalent performance that are way cheaper (plagiarism)
    • shares a bunch of clips of Ed Zitron repeating a lot of the things he said over the last six months about there not being a path to profitability for American AI companies
    • the bond market looks similar to how it did back before 2008
  • I Cast Fist@programming.dev
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    4 hours ago

    “They don’t have anything for hypergrowth anymore. They don’t have the next iphone, the next google search, they don’t have anything, they’re completely out of ideas” - Ed Zitron

    • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
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      4 hours ago

      TLDW: American companies spend insane amounts of money and have no path towards profitability, and Chinese companies are spending a tiny fraction of that to deliver a product that’s mostly as good. On top of that, countries and companies are uncomfortable relying on closed models. So, Chinese providers offering open models at far lower rates mean they’re quickly taking over the market. And it turns out that simply having the best model isn’t really the most important thing. If a cheaper model can do the work then there’s no point paying order of magnitude for a more capable one.