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How are you going to price discriminate profitably when there is effectively no switching cost? Anthropic and OAI are also competing for revenue share in the same market segment.

If small models keep improving for specific purposes and larger models have diminishing returns, then what?

E.g. I can see a world where you have a local model that is specialised just for producing code.

And what would have been the effect if those had been exploited?

Not so fast, Im working on something like this with a g_vt.