> 2) Almost, Chinchilla concerns itself with minimizing cost(training) + cost(inference).

Where are you getting that from? As far as I can tell, the Chinchilla paper is purely about getting the highest quality from a fixed training budget. Inference is only mentioned a couple of times in passing as a side effect of smaller models, not as the goal nor as an input to the formula. (And just to be clear: the Chinchilla paper was arguing for smaller models trained for longer, while you seem to be saying that they were arguing for larger models since the inference cost is insignificant.)

> I believe in one of the examples they pointed out that even the whole internet inferring with a model for years was still only 20% of the cost of training that model.

I do not see any such example in the paper