vsreekanti

I completely agree — open-source models and custom deployments just can't compete with the cost and efficiency here. The only exception here is if open-source models can get way smaller and faster than they are now while maintaining existing quality. That will make private deployments and custom fine-tuning way more likely.

Probably some combination of all the above! I think 1 and 2 are interlinked though — the cheaper they can be, the more they build that moat. They might be eating the cost on these APIs too, but unlike the Uber/Lyft war, it'll be way stickier.

Yep, we agree that the obvious direction of innovation for OSS models is smaller and cheaper, likely at roughly the same quality: https://generatingconversation.substack.com/p/open-source-ll...