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AXIOS (Madison Mills) - AI labs are cutting model costs - and it could help them slow down safely

The shift of the AI frontier toward more powerful, lower-cost models could pave the way for safely slowing development, experts say. Why it matters: Top U.S. startups including OpenAI and Anthropic, as well as other AI players, have to develop a financially viable path to allow them to slow development. Otherwise financial incentives will be too powerful . Driving the news: The health of the entire U.S. economy now rests in part on the AI boom. Yet the companies at the center of the race are burning far more cash than they take in, and will be for the foreseeable future. - Their top executives have also shown unusual solidarity in expressing a desire to slow the pace of model development due to a troubling series of incidents in which…

The shift of the AI frontier toward more powerful, lower-cost models could pave the way for safely slowing development, experts say. Why it matters: Top U.S. startups including OpenAI and Anthropic, as well as other AI players, have to develop a financially viable path to allow them to slow development. Otherwise financial incentives will be too powerful . Driving the news: The health of the entire U.S. economy now rests in part on the AI boom. Yet the companies at the center of the race are burning far more cash than they take in, and will be for the foreseeable future. - Their top executives have also shown unusual solidarity in expressing a desire to slow the pace of model development due to a troubling series of incidents in which…Open

AXIOS (Madison Mills) - Cheap, powerful AI models are increasing usage, a bullish sign for the AI boom

AI companies have competed on having the best and often most dangerous models for years. Now, they're pivoting to a new focus: cost. Why it matters: The biggest risk to the AI boom is demand, and recent innovations to make models cheaper while maintaining powerful levels of intelligence have offered a bullish signal. - As the prices of top models from OpenAI, Anthropic and others come down, usage is increasing dramatically, a trend that points to the kind of demand that will be necessary to justify trillions of dollars in spending. State of play: It's modelpalooza in the AI world this week, with OpenAI, Anthropic, SpaceX and some Chinese model providers all offering new releases. Most of them are offering shocking levels of intelligence…

AI companies have competed on having the best and often most dangerous models for years. Now, they're pivoting to a new focus: cost. Why it matters: The biggest risk to the AI boom is demand, and recent innovations to make models cheaper while maintaining powerful levels of intelligence have offered a bullish signal. - As the prices of top models from OpenAI, Anthropic and others come down, usage is increasing dramatically, a trend that points to the kind of demand that will be necessary to justify trillions of dollars in spending. State of play: It's modelpalooza in the AI world this week, with OpenAI, Anthropic, SpaceX and some Chinese model providers all offering new releases. Most of them are offering shocking levels of intelligence…Open