Do it. I'm done with all the bullshit.
this post was submitted on 15 Jul 2026
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The sooner it happens, the less damage there will be.
TLDW:
- China is good at compressing the existing models by stealing the answers they give you to make models that have equivalent performance that are way cheaper (plagiarism)
- shares a bunch of clips of Ed Zitron repeating a lot of the things he said over the last six months about there not being a path to profitability for American AI companies
- the bond market looks similar to how it did back before 2008
It's worth noting that the whole China is distilling our glorious models narrative is largely nonsense. First of all, everybody distills, so it's not like it's unique to Chinese companies. Second, most of actual research that's published is now coming out of China.
Making a new cheaper model involves nothing more than taking output from an openathropic model and feeding it into your own. Don't worry about why only Chinese companies are able to do it.
Obviously people like Scam Altman are just too principled to stoop to the level of these savage Chinese companies.
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(38 replies)
(plagiarism)
In AI?? How dare!
HOW DARE INDEED ha thanks for the chortle 😂
China is good at compressing the existing models by stealing the answers they give you to make models that have equivalent performance that are way cheaper (plagiarism)
Lol plagerism is when they take your shitty product and actually make it better apparently. Begs the question why China manages to succeed at this when Western companies that own the original product can't. You'd think they'd always be one step ahead of those damn plagerising Chinese scum or at least would be able to do the exact same thing China does.
Also if you're calling plagerism on this I'm calling plagerism on all of AI. You can't accept any generative AI while simultaneously pearl clutching when someone else plagerises your country's AI. So pick one. Either we ban all AI for plagerising all of humanity or we don't give a shit when one AI company plagerises another.
I didn't really intend "plagiarism" to convey my opinion (which is that the AI companies can get fucked), but more as a neutral term to mean Chinese companies are copying to make cheaper models, as asserted by the video
Fair enough, I apologise for jumping to conclusions then.
love to see the reverse brain drain
"They don't have anything for hypergrowth anymore. They don't have the next iphone, the next google search, they don't have anything, they're completely out of ideas" - Ed Zitron
When someone watch it , pls share how china is going to pop the bubble
TLDW: American companies spend insane amounts of money and have no path towards profitability, and Chinese companies are spending a tiny fraction of that to deliver a product that's mostly as good. On top of that, countries and companies are uncomfortable relying on closed models. So, Chinese providers offering open models at far lower rates mean they're quickly taking over the market. And it turns out that simply having the best model isn't really the most important thing. If a cheaper model can do the work then there's no point paying order of magnitude for a more capable one.
TLDR: OSS local model good, overpriced cloud-only model bad.
Oh got it. Thank you
And the video points out that the reason AI has trouble getting profitable is because it doesn't just work like how tech "traditionally" works: software pretty much only has development costs, and after that copying and selling infinite copies of the product is pretty much free, where as AI not only has development costs, but it also costs a ton to provide outputs to the customers.
So the future belongs to open source local models?
No, now that “cognition” of a sort can be smeared on any task at the cost of electricity the future belongs to those who control the generation of electricity.
Local models are much less efficient in terms of both power consumption and cost per token.
I am currently running a local model. It’s not efficient.
Concept of global knowledge available locally sounds plausible to me. I’m not expert in this topic though.
please do
Aaaaaaany moment now
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