Palihapitiya predicts marrying next-gen systems to open source will cut AI costs by 90 percent.
“If you take these next generation systems and you marry them to open source, you're gonna cut the cost of AI by 90%.”
Palihapitiya says his company now sets token budgets for developers due to AI costs escalating rapidly.
“We're getting to a place where we have to basically now say, what is the token budget that we're willing to give our best devs?”
Palihapitiya says his costs are increasing three times every three months while revenues are not.
“But the problem is that my costs are going up three x every three months. My revenues are not. Token use is very addicting.”
Palihapitiya predicts silicon and software innovations will drop AI training costs from $10B to $10M runs.
“At the scale of what they're trying to do, those kinds of innovations are going to make the cost of model training so much cheaper that it's like, why would we stick to the $10,000,000,000 training runs when we can have the $10,000,000 training runs?”
Palihapitiya highlights DeepSeek completing tasks at 105x lower cost than alternatives
“Why pay $1 when I can pay $105. Said no CFO, CEO or Board Director ever. https://t.co/QoKPFFfORB”
Palihapitiya highlights DeepSeek completing tasks at 105x lower cost than alternatives
“Why pay $1 when I can pay $105. Said no CFO, CEO or Board Director ever. https://t.co/QoKPFFfORB”
Palihapitiya says opposite of Roose, model capability gains fully priced in and cost going to zero
“@kevinroose Opposite. It’s all priced in. The cost is going to zero. All powers will be unlocked.”
Palihapitiya says opposite of Roose, model capability gains fully priced in and cost going to zero
“@kevinroose Opposite. It’s all priced in. The cost is going to zero. All powers will be unlocked.”
Palihapitiya clarifies he didn't say intelligence scaling cost would reach zero
“@orskyai I didn’t say this cost would go to $0!”
Palihapitiya clarifies he didn't say intelligence scaling cost would reach zero
“@orskyai I didn’t say this cost would go to $0!”
Palihapitiya notes 50-80% of software lifetime cost comes post-launch after integrator team leaves
“50 to 80% of a software system's lifetime cost arrives after launch. At launch, a system integrator's delivery team rolls off to the next engagement, so the people who made design decisions are gone before the expensive years begin, and the support begins. Ask who takes the”
Palihapitiya notes 50-80% of software lifetime cost comes post-launch after integrator team leaves
“50 to 80% of a software system's lifetime cost arrives after launch. At launch, a system integrator's delivery team rolls off to the next engagement, so the people who made design decisions are gone before the expensive years begin, and the support begins. Ask who takes the”
Palihapitiya argues four recent control planes govern model selection and cost but miss original intent
“On Control Planes… Four companies shipped an enterprise AI control plane in the last two weeks. They all do one thing well which is govern which model answers a request and what it costs. That’s a real problem and I’m glad it’s getting solved. But what none of them capture is”