Six efficiency breakthroughs labs didn't see coming upend semiconductor demand assumptions

bookwormengr · x · 2026-09-16

An engineer lists six trends most AI lab insiders failed to foresee: 4-hi HBM (equivalent HBM reduction via WideEP and smaller batches); LPDDR-based approaches cutting parameters in HBM and FLOPs by 50%; hybrid linear and sparse attention proving highly effective; Flash-style models excelling at economically valuable tasks beyond coding; techniques like Attention Residue, mHC and stable MoE packing denser intelligence per parameter; and 400X KV cache compression via encoder-decoder with little quality loss. Implication: most labs assumed near-linearly growing model sizes (1-3-5-10-30-50-100T), which isn't happening — yet most long-term agreements were signed on that old assumption.

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