There’s evidence that model size and representational capacity are not exactly the same, and that scale is maybe more important for learning than it is for representation (past a point). Consider the early work from the current neural scaling paradigm. The Chinchilla scaling study shows that smaller models can match the performance of larger models by training longer.
To GP’s point, if everyone is exploiting the scaling lever, few resources are being allocated to finding more efficient training algorithms that could let us work with right-sized models instead of pulling the scaling lever as hard as we can afford to.
I’ll end with a dramatic example from my field of materials science (which admittedly might not strictly generalize to LLMs). A lot of the field is pursuing the model scaling strategy, and it’s still paying off. But [0] recently reported competitive accuracy with much smaller models that run faster and can address much larger problems. The model architecture is pretty much the same, but they use a different training strategy and really focus on data quality