>Especially since there are no scaling laws, it's an empirical observation based on essentially 3 examples - GPT2 to GPT3 to GPT4 (and their rough equivalents from Facebook and Google and a handful of others). This all happened in the span of 4 years or less. We don't even fully know how much larger GPT4 is compared to GPT3.
I don't think you fully understand the scaling laws. They hold for those models, sure, but also other models at the same scale, smaller scale models, models in-between those examples, etc. They're an empirically derived law, for sure, but so far they've been very accurate for prediction, not just description. We know how much the loss will drop for a given amount of compute and data.
>Not to mention, we already know OpenAI has spent more than a hundred millions of dollars training GPT-4, and they are quite probably selling it at a loss (each query may well cost them more in compute power than they charge for it). So, if GPT4 is ten times bigger than GPT3(.5) as sometimes reported, economics suggest they may already not be able to scale GPT5 to the same extent, and are definitely not going to be able to reach GPT7 (1000 times GPT4, or roughly 100 billion dollars).
I think there's a decent chance even that much money could be spent if there's appropriate returns from GPT-5 & GPT-6. More importantly:
>So, unless you believe compute power will go down in cost massively,
Why on earth wouldn't you believe that? That is what has happened consistently for decades, and unlike general purpose computing which is slowing down, the fact that we need so much compute for one relatively specific operation means we can build ASICs for them (GPUs are already a chunk of the way there) and see very large speedups. As well, at these scales energy costs are a huge part of the training costs, and energy costs are continuing to drop dramatically because of solar. Compute is also a very flexible energy load, you can build it such that it can be paused at night if necessary, which could make it a very good fit for solar energy overproduction. Basically, there's a lot of low hanging fruit in terms of cost reductions for AI training available and a long trend of the cost of compute getting cheaper, it seems silly to just assert that your position (trends won't continue, there will be a discontinuity before we reach whatever point human level performance happens to be at) is the most likely outcome. All else being equal I would expect the existing trends to continue.