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How do you justify all these data centers when models are becoming good enough to run locally and other models are being directly "burned" into chips (model on chip)? Open weight models are almost as good as the closed ones now and they are free/uncensored.

The only thing DCs will still be need for is training, everything else will be done locally on your own hardware.

This bubble will burst and it will be ugly.

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Open models are still behind February's Mythos.

Whether they can narrow that gap in the future, or OpenAI and Anthropic widen the gap with access to more compute and their better models assisting in the research process, remains to be seen.

At this time I see no reason to believe these data centers won't be in high demand.

> OpenAI and Anthropic widen the gap

Extremely unlikely seeing what the Chinese have been able to do with the limited resources they have. The creativity in finding improvement such as what deepseek has released is incredible. At this point it's a bet on the looser if you think the open models won't catch up and surpass the closed ones.

How do you know that what OpenAI and Anthropic have isn't even more incredible?

Rumored breakthroughs in efficiency were reported a few times.

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