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zozbot234today at 1:38 AM2 repliesview on HN

Even if the AI frontier becomes "totally commoditized" it will still be reliant on a scarce factor, namely leading-edge chips. Chipmakers will ultimately capture that value, because competing it away would require expanding the industry and that's a very slow process involving billion-dollar expenses planned far in advance (multiple years, and that lead time can only expand further as the required scale gets even larger).


Replies

baron816today at 2:51 AM

You don’t think open AI models will eventually be able to design and build chips and fabs and all their components?

kdkltoday at 1:48 AM

Except you're neglecting the fact that LLMs can become more efficient.

The magical thing about software is that efficiency gains can come pretty quickly relative to other industries.

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