What proportion of commercial LLM use is classification? I'm just wondering what happens to business AI spending/data centre usage when they realise they don't need full LLMs.
The American stock market probably loses 20% of its value in a few days.
Can you share your short positions so we can see how confident you are in these predictions?
Can you uhh elaborate on why?
because entire economy is booming due to AI spending which priced in for more spending and revenue in the future.
I'd expect the vast majority at this point is coding. Classification is a thing but in my experience tends to run on light, cheap models, not the proprietary frontier ones.
part of agentic engineering is classification as well tho. reviewing/gating, what to read etc. don't need a full LLM
We've stopped upgrading the models of our classification workflows for >1 year at this point, meaning they're running acceptably on early/mid-2025 models. That said I believe there is a long tail of non-production-ized users who throw this into their everyday LLM chats.
In one of my client projects we've had to do forced upgrades of LLM models because of deprecations (I believe three or four of them over the course of 2 years). Each time our internal benchmarks have shown REDUCED performance after upgrading to "better" models.