Press Space to continue
Top-tier tech companies are shifting from expensive
Press Space to continue
Covered the "why" of this, just last week in @Pragmatic_Eng: the largest tech companies (at the top 1%) aren't using fewer tokens, they're just being cost conscious and moving to cheaper, still very capable open models running vs SOTA model usage https://newsletter.pragmaticengineer.com https://x.com/GergelyOrosz/status/209776…
arakharazian@arakharazianSep 9
NEW from Ramp AI Index: AI spend *declined* among the top 1% of businesses spending on AI. In August, the top 1% of businesses spent $7.2K per employee per month, down 10% from a July peak ($8K). We're seeing more cracks in the AI thesis as a number of drivers show spend topping out. My take: it's not because of open Chinese models. It's model wars. Price cuts + a growing share of spend is shifting to standard and lite models (which are already cheaper) over the frontier.
