The Data Exchange with Ben Lorica Monthly Roundup: The Economic Realities of Large Language Models
Aug 22, 2024
Paco Nathan, founder of Derwen, dives into the latest advancements in large language models, notably the launch of LAMA 3.1 with its groundbreaking 400 billion parameters. He discusses the daunting financial challenges faced by AI developers, emphasizing the competition between startups and tech giants. The conversation also covers cutting-edge research on neural operators, the shift towards custom AI solutions, and vulnerabilities in AI software supply chains. Additionally, listeners are introduced to innovative tools like the Relic library and insights into the cultural impact of technology.
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OpenAI's Financial Challenges
- OpenAI faces financial challenges with high operating costs and increasing competition.
- They need to find product-market fit or raise more money, amidst regulatory and data acquisition issues.
University Research Limitations
- Universities struggle to compete in LLM research due to the high costs of data and compute.
- Skilled engineers needed for infrastructure are also scarce, limiting research capabilities.
Amazon's AWS Subsidy
- Amazon subsidized business lines like AWS, demonstrating a long-term view.
- Hardware vendors could potentially invest in diversifying model building, given their significant profits.