fin argues cheaper open-source models won’t leave OpenAI and Anthropic unable to buy GPUs

What happened

In part 4 of fin’s AI semiconductor series, fin argues that increasingly cheap, downloadable open-source models such as DeepSeek won’t stop OpenAI and Anthropic from making money or buying GPUs. The first reason given is that costs fall as prices do: each new chip generation produces about twice as much output from the same amount of electricity.

The story so far

Fin argues that cheaper, downloadable open-source models such as DeepSeek won’t prevent OpenAI and Anthropic from making money and buying GPUs, because the cost of running models falls alongside their prices. In part 4 of an AI semiconductor series, fin says each new chip generation produces about twice as much output from the same amount of electricity. Fin presents that efficiency gain as a reason lower model prices need not eliminate the labs’ profits or ability to purchase GPUs.

Keep reading

Trending now

1. 1Mistral Releases Voxtral 3 Speech Models, Voice Agents API and LiveKit-Based SDK
2. 2DeepSeek Open-Sources DeepInfer and API Components, With Model and Hardware Limits
3. 3OpenAI Acquires Orchestra Bio to Expand AI Tools for Drug Development
4. 4Google Rolls Out Gemini Personal Intelligence to Android Auto, With Google Built-In Cars to Follow