When you make compute cheaper do people buy more?

Yes. It's called Jevons Paradox and it's a big part of our business thesis.

In the 1860s, an Englishman wrote a treatise on coal where he noted that every time steam engines got more efficient people bought more coal.

🧵(1/3) It’s a paradox because if they're more efficient, why are they buying more coal?

- The answer is when you make a steam engine more efficient, it reduces the OpEx;

- When you reduce the OpEx, it increases the number of activities that are profitable;

- Therefore, people will do more things using steam engines and coal demand rises.

The same paradox applies to compute.

🧵(2/3)

(1/5) One of the reasons why chips are so hard to innovate in is because if you're asking someone to put up a 10 million, 100 million, or a billion dollar check they need to know that what they're buying is going to work. (2/5) That makes it almost impossible to do counterintuitive things. Like, “Try this new chip called an LPU", when everything in the zeitgeist is talking about GPUs

And if you're a startup? Forget it

That realization is why we made the strategic decision to put up our own cloud

(1/5) "The reports of the LLM scaling laws' demise have been greatly exaggerated."

techcrunch.com/2024/12/06/met… (2/5) Today, our partner Meta released its latest version of Llama-3.3-70B-Instruct. And to all those who speculated that the industry had hit the wall - maybe some have, but Meta hasn’t yet. 😉

This is a big deal.