Watch this trend CLOSELY! This motion has the potential to implode big chunks of the current AI business model, as practiced by the big model AI providers.

Big "frontier" intensive compute AI models may soon reach diminishing returns compared to smaller models for becoming more efficient and delivering higher levels of performance.

The real danger here is that AI algorithms quickly hit a performance cliff and huge scaling of AI infrastructure becomes a financial abyss. Developing more efficient and smaller algorithms needs more attention. https://www.wired.com/story/the-ai-industrys-scaling-obsession-is-headed-for-a-cliff/ #AI #MIT #AIFrontierModels #AIModels #AIInfrastructure #CircularFinancing #VendorFinancing #AIAlgorithims