Opinion: Small models catching up will burst the AI compute bubble
bindureddy · x · 2026-08-18
Addressing the current compute crunch, this view argues it is merely a temporary "small model capability problem." Key points include:
- End of Scarcity: Once small models catch up to big models, demand for compute will evaporate.
- Potential of Small Models: Small models can be improved to handle 95% of everyday long-running tasks.
- Bubble Burst: The current compute shortage and AI hype will face a bubble burst at that point.
This perspective challenges the mainstream narrative of continuously scaling compute.
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