[maxdo]

it's not that huge of a deal if you compare commercial costs in china and cheapest us states, and electricity is only one of the factors.

The real reason: anthropic + openai just cut the reasoning output to prevent distill, and hence you see the rise of chinese models to establish contracts globally .

[stingraycharles]

“and hence you see the rise of chinese models to establish contracts globally”

how will that help them working around the distill issue?

[gessha]

Collecting user data directly by competing on price. The next step would be figuring out how that data can bring them closer to SOTA.

[stingraycharles]

Yes ok but that doesn’t give them the thinking tokens, how to reason about the prompt, which is precisely what’s most important.