No Priors: Artificial Intelligence | Technology | Startups Future of LLM Markets, Consolidation, and Small Models with Sarah and Elad
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Sep 12, 2024 Delve into the dynamic world of large language models with a focus on recent market consolidations and strategic partnerships. Discover how firms are innovating with smaller, specialized AI models that outperform their larger counterparts. The discussion highlights the fierce competition driving down API costs and the implications of AMD's latest acquisitions in the semiconductor space. Plus, there's a humorous quest for a humanoid robot, blending tech aspirations with a touch of whimsy!
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LLM Market Consolidation
- The LLM market is consolidating as model companies join larger enterprises or partner with hyperscalers.
- Venture capital is insufficient to support the rising capital needs of standalone LLM companies.
Increased Competition in LLMs
- The LLM market has become more competitive due to performance increases, price decreases, and open-source players.
- A few players with significant capital moats are breaking away.
Decreased API Costs
- API costs for LLMs have dropped significantly, about 200x in the last two years.
- This decrease pushes companies towards specialization and other areas like bespoke models or vertical applications.