Small Models Have Arrived
The emergence of highly capable, low-cost small language models is changing the economics of consumer AI applications. By significantly reducing inference costs, these models enable developers to build sustainable, personalized AI products that were previously too expensive to operate.
Why it matters
Lowering the barrier to entry for AI inference is essential for the proliferation of consumer-facing AI software.
For the past few weeks, I've been playing with gpt-5.6-luna . It is shockingly capable, fast, and smart. I regularly see it do ~100 tps, and rip around my codebase, email, and knowledge base.
The author provides a personal perspective on market trends based on economic data.
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