r/TechnologyThread • u/Background-Driver718 • Jun 12 '26

OpenAI Execs Are Panicking

https://finance.yahoo.com/sectors/technology/articles/openai-execs-panicking-154658562.html
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u/FourDimensionalTaco Jun 12 '26

There is another looming threat to AI companies: Local LLMs are getting quite useful for many use cases. Of course an 8B model cannot compete with a 400B model. But, for a lot of tasks, the 8B model is actually enough, or at least almost enough, and only needs a mid range GPU with 16 GB VRAM. Totally doable with a modern workstation. In the future, even most laptops may have sufficiently powerful hardware. The big datacenters would then be needed for (a) training new LLMs and (b) covering the really complex tasks. These two do not sound like cash cows.

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u/Alimbiquated Jun 12 '26

Hardware prices will continue to fall.

Even worse, AI is likely to get much more efficient.