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Why AI Is Collapsing: How China Is Winning. [video]

https://www.youtube.com/watch?v=JXJf7vL8k94

by Bender • 21 days ago

2 1 21 days ago

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elevation• 21 days ago

Video describes the decline in usage of US-based AI due to budget concerns overriding whatever benefits the models might provide. To realize LLM benefits at a lower cost, companies are switching to Chinese models -- with the added benefit of being able to self host, rather than leak IP for frontier models to train off of.

This is just a price discovery mechanism. LLM started out cheap/free, but as the effective costs go up, AI companies get to see the level at which customers no longer value their services. Investments in US training/inference are still growing domestic capacity enormously, this trend is only revealing the returns they'll get for their investment.

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