So we're constantly hearing that AI is so expensive and it actually out prices the work of Labor and this is not true I kind of wish it was but it's not. I'm confused why companies are running into this but I'm going to lay down some facts.
First and foremost American models are currently top-tier, if we were to break down all the AI companies it would be broken down like this
Anthropic is the best, they're Fable 5 model is incredible, outperforms everything else right now, the issue is not the model at this point but people's unwillingness or intellectual laziness in prompting.
The best way to prompt is layered prompt if you can do layered prompts that are refined before you input them into the system Fable 5 is capable of generating real world graphics three-dimensional engines and incredible games and if you can buy it's coding features with an engine that already exists it is capable of creating studio level games within a week.
You can actually sketch out different figures input them as pictures and ask it to use them as models and it will do so.
It's ability to cut down on labor cost for game development is absolutely incredible and I am sure this is true in any other fields as well.
It is the first of the AGI models.
It is early AGI and most experts thought AGI was going to show up around 2030 to 2035, it essentially appeared between 3 to 8 years early.
It's way ahead of its time which is most likely why it got shut down both to protect jobs and also because other companies were so far behind they probably lobbied for a competitor that's generations above them to be shut down.
Next comes Gemini and then comes openai and meta isn't even in the race.
China has nothing that comes close to Fable 5 or the mythos models.
The downside is their incredibly expensive to run it is true that the mythos 5 models are cheaper but still for most companies who aren't using AI for top level production the price is probably not worth it the American models are extremely expensive for two reasons one they are frontier based models that have not yet been refined for efficiency and therefore they tend to use too many tokens.
Second of all American companies that are hosting these models would like to charge companies that are using them a dime and a leg to make up for developmental cost and I'm sure to make a profit.
Here's the thing if you look at the open source models there's something that's currently called agentic flow.
Basically instead of using the frontier models it uses well tested and refined for efficiency models to fact check each other's work currently I think we use about 10 of them in a circular form then that output is then sent to another model for verification and if not to the standard it's sent back to the generating models.
If the output is deemed worthy it is then sent to the user.
It turns out this is much cheaper than using the frontier models and you can open source this and run it on a personal server.
There are already American companies that are creating data centers that corporations can use that fit in the size of a shipping container for about 10 million, these miniature data centers can host almost all of the current models allowing companies to control their own cost and run their own models through a system like this this heavily cuts down on expense.
Or you can use one of the open source host that are selling services for far cheaper than the current five large AI companies excluding meta because they're joke.
The next phase is the Chinese models which get about 60 to 80% of The benchmark capacity of the frontier models it is true that they're not nearly as good but they cost between 1/10 and 1:30 price of the frontier models to host.
Deep seek and other Chinese models are not quite on the level of opus or mythos5 but they tend to be better than GPT.
Plus they're incredibly inexpensive and you can host them locally.
So it seems like the issue here with AI cost is not the actual cost of AI but companies inability to wisely use ai.
A good AI consultant can help a company wisely use models that are trained on the data that they're using and can use rag to avoid hallucination and use a series of models in agentic flow in a circular format to produce great results for a fraction of the cost of using the large American companies services.
Companies need to start hiring ai consultants. Ai consultants need to get certified and stay up to date with the most recent developments which change week by week. This is what's necessary the issue is not the price of AI it is the stupidity of companies in the implementation of ai.
They chase fancy commercial services instead of investing in their own infrastructure or researching companies that are open source.
What really is silly is that a CEO could actually ask Claude about this and it would show it all of the possibilities if their companies could use these services at a fraction of the price so the question is why aren't they? Is it because government contracts require them to use expensive and inefficient host? Using expensive and inefficient models? Is this corruption what is going on here? Why are companies constantly using expensive and inefficient services instead of going for open source efficient and refined services? Services that have distilled their models to run cheaply and efficiently.
Some companies in Asia actually host their local AI models and run them purely off of solar panels.
It's a question of implementation not capacity at this point
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