Keep pulling the thread on Noam Shazeer.
The CEO of Broadcom stated that the custom "Jalapeño" chip co-developed with OpenAI cuts costs by 50% compared to a typical GPU.
Jason believes a key strategy for OpenAI and Anthropic to defend against open-source models is to lower their inference costs to a level cheaper than what open-source providers can offer.
The "flabby middle" of the AI model market is at risk of massive disruption for companies like OpenAI from open-source alternatives.
The success of OpenAI and Anthropic's business models has been dependent on outsourcing hundreds of billions of dollars in CapEx to cloud providers.
Cerebras's stock price dropped 16% following the announcement of OpenAI's custom chip, which the market interpreted as a threat to a potential $20 billion chip order.
Noam Shazeer, formerly of Character AI, has left Google DeepMind.
John Jumper, a Nobel Prize winner and co-creator of AlphaFold, has left Google DeepMind to join Anthropic.
Google had a ChatGPT alternative, but its internal bureaucracy smothered the product, allowing OpenAI to take the lead in the market.
A rumor suggests that Anthropic has had a significant, undisclosed research breakthrough, which is the reason John Jumper joined the company.
As the number three closed-source LLM provider, Google is the most vulnerable to competitive pressure from open-source models.
The Chinese government is subsidizing the training costs for major open-source AI models, making the term "open source" misleading in this context.
Most of the competitive open-source alternatives to the leading foundation models are based in China.