A lot of people sharing this, but the decline is driven by price cuts at the frontier, in turn driven by competition between OpenAI and Anthropic.
Not open source models, which are <5% of business spend.
And if frontier models see a hit to their margins, that will depress their ability to reinvest in infra.
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Why open-weight models that compress margins at the model layer are net positive for AI infra demand, exhibit 1001.
An open-weight token consumes *roughly* the same amount of compute as a frontier token for a similar size model.
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