Top
Best
New

Posted by bkd9 3 hours ago

What Happens When the Cost of Intelligence Drops 100x(catalystneuro.com)
91 points | 80 comments
Balooga 1 hour ago|
Jevons Paradox [1]

> when technological improvements that increase the efficiency of a resource's use lead to a rise, rather than a fall, in total consumption of that resource.

[1] - https://en.wikipedia.org/wiki/Jevons_paradox

Las Vegas replaced the expensive incandescent lighting on the strip with cheaper to run LED equivalents. But the costs didn't come down because they were able to add more lights and larger displays.

I think the same will happen with tokens. As the cost of tokens comes down, these models will just consume more tokens.

everdrive 1 hour ago||
> But the costs didn't come down because they were able to add more lights and larger displays.

People are a gas; they expand the fill the space they're in. If you give someone a big house, they'll fill it with crap. If you make food cheap, they'll eat too much, even when it harms their health.

Making things cheaper usually just makes making them more prevalent. It's why computers are not faster than 20 years ago. They're merely more capable -- developers quickly and aggressively fill up (and overflow) all that added capability until you're back in the same place you used to be.

vanuatu 1 hour ago|||
You're right, computers are definitely the same speed as they were 20 years ago.
wongarsu 33 minutes ago|||
20 years ago is about when SSDs came to consumer PCs. Which is the last time I remember thinking that my computer became faster than the previous one was when it was new (if by computer we mean the hardware combined with a mainstream up-to-date software stack)
behringer 4 minutes ago||
Your computer may not feel faster than a 20 year old PC, but CPUs have gotten way, way faster.

Compare the AMD Ryzen 7 9800X3D to the AMD A12-9800, you go from 4 cores to 8, and you double the power consumption. But it's not twice as fast. It's 10 times faster. Depending on the exact metric, it could be as little as twice as fast or as much as 1000 times faster, depending on the exact operations.

On top of that memory throughput between DDR4 and DDR6 is about 2.5 times faster as well.

Oh and this isn't 20 years apart, this is 7 years apart. 20 years will see almost an exponentially larger gap even still.

LoganDark 1 hour ago|||
many computers actually feel much slower than they did 20 years ago: https://danluu.com/input-lag/

(...or over 40 years ago)

jayd16 1 hour ago|||
Anyone not living paycheck to paycheck is just constantly gorging on fast food?
everdrive 58 minutes ago||
I don't mean to be glib, but for the most part, yes. https://www.nytimes.com/2025/09/11/well/child-obesity-un-rep...

Obesity is nearly everywhere. In the old days, "prosperous" might have been a euphemism for "fat," as only the rich could afford to be fat. Now even people who are "food insecure" are often quite fat. Some of this of course is due to food quality, but ultimately there are no starving fat people.

jayd16 25 minutes ago||
How does "people will uncontrollably eat if given the chance" turn into "there are no starving fat people".

You're right that obesity is not necessarily linked to overeating . How is this relevant to your original point? Isn't it a complete contradiction to what you were saying before?

The original post was hyperbolic to the point of nonsense and now it seems we're on a completely different topic.

everdrive 12 minutes ago||
>You're right that obesity is not necessarily linked to overeating

This can be true, but I think some people are confused. The vast majority of the time, it is linked to overeating. There are some edge cases where there is something else going on metabolically, but most people do over eat.

conjecTech 52 minutes ago|||
Jevon's Paradox says nothing about the size of the incremental demand though. Lighting is a great example. The US went from spending 15% of our electricity on lighting to ~4%. LEDs are maybe 5x as efficient, so that would be 3% without any change in usage. So we did see maybe a 30% increase in consumption as a result of lower prices, but that was nowhere near large enough to offset the efficiency gain in terms of overall consumption. Las Vegas may have, but that is a very small part of overall usage.

I anticipate we will see something similar with intelligence. There is probably headroom to consume 100x as much intelligence in R&D. But that isn't most of the economy. Will run of the mill service jobs increase their use of intelligence by enough to offset the effect of cheaper prices? I think that's the real question.

TheOtherHobbes 20 minutes ago||
Intelligence is a lever, not a fluid. Power depends on how much force it can apply to specific points, not how much exists in general.

True high-intelligence outputs (Maxwell's equations, the Fourier Transform, quantum theory) are fundamentally transformative in ways that mid-high-competence (starting a generic B2B SaaS, making another CRUD app) aren't.

Which is why we've assumed we're already pretty far down the path to AI, but we really aren't. Solving random Erdős problems isn't the same as opening up a completely new kind of math/science with game changing practical applications.

I don't think you can get to that level with more compute and more tokens. I think it's going to take new higher level knowledge representations and new kinds of training to get there.

And the token count and compute may turn out to be lower than what we're using now.

bee_rider 1 hour ago|||
Definitely not going to argue against the Jevons paradox in general, it is observed in various cases.

The lightbulb thing seems different though? Or at least it is a specific subset. Lights in Las Vegas are sort of an advertisement, right? In the sense that having the brightest or most interesting (or whatever) lights draw attention to your show, casino, hotel, whatever. It’s kind of a zero sum game in that the different shops are competing for the finite attention of a more-or-less set number of tourist. I think part of the Jevons paradox is that society generally finds more useful applications of the newly cheap thing. If the thing’s only purpose is to compete better in a competition with a set prize (all of the tourists’ money), that’s constrained in some way.

Intelligence is weird though. I guess we could eventually hit the point where, I dunno, maybe there’s some information theoretic bound where we process all of our signals as cleverly as possible and aren’t bound by intelligence anymore. Obviously we’re nowhere near that. It would be a very alien environment.

Frieren 1 hour ago|||
> I think the same will happen with tokens. As the cost of tokens comes down, these models will just consume more tokens.

That sounds a race to the bottom for AI companies profits.

I do not think that LEDs are high profit margin items.

Flamkuchlo 1 hour ago|||
Tokens for sure because we still waiting for agents talking to agents as a default. Like your agent team and very long or 24/7 running agents.

But we never scaled intelligence like this. The industrieal revolution created for the people at that time quite a huge issue / it was disruptive.

What will hapen to us though?

AndrewKemendo 1 hour ago|||
Turns out Grey Goo was just thermal paste
perching_aix 1 hour ago||
Sounds like a variation on the induced demand principle: https://en.wikipedia.org/wiki/Induced_demand

Related:

- Parkinson's law: "Work expands to fill the available time." https://en.wikipedia.org/w/index.php?title=Parkinson%27s_Law

- Lewis–Mogridge position: "Traffic expands to meet the available road space." https://en.wikipedia.org/wiki/Lewis%E2%80%93Mogridge_positio...

And I pretty much just plain agree, this is exactly what will happen.

I don't think there's anything wrong with it (in isolation) either, though I do already find myself pointing out that we're misusing LLMs at work sometimes (most notably, a recent mini project could have been a jinja template - and it did become one thanks to me pushing back on this). Abundance is one thing, waste and misuse is another.

bena 57 minutes ago||
Also Jevon's Paradox: the more efficient a system becomes, the more it gets used, making it use more resources rather than less.
andai 1 hour ago||
> Reading everything becomes the default. At a cent per document, a model can read every paper

I love how in our day "reading everything" means "the computer reads it for me".

I expect soon the computer will be able to go on bicycle rides, and spend time with my wife.

sssilver 1 hour ago||
Hasn't the computer already been spending time with your wife?
iririririr 9 minutes ago|||
it's called Instagram
smugtrain 1 hour ago||||
Asymmetric multiprocessing with your mom
lubujackson 1 hour ago|||
You're absolutely right!
rjsw 1 hour ago|||
Douglas Adams captured this in "Dirk Gently's Holistic Detective Agency", a VCR watches TV for you and an Electric Monk believes things for you to save you the effort of doing it yourself.
bellowsgulch 1 hour ago||
Futurama did it first!
gs17 16 minutes ago||
"Robot, experience this tragic irony for me!"
jbotdev 1 hour ago||
I think speed is actually going to be a bigger factor than cost. Even projects where “money is no object” often hit a wall with LLM response times.

Sure you can speed things up with parallel work under subagents, but as with parallelizing traditional computational tasks, there are diminishing gains.

I keep hearing people saying just change the way you work to trust long-running agents and multi-task more, because they’re too slow to work with interactively for many use cases. I think that’s painful in a world where we expect humans to still heavily guide and interact with agents for their day-to-day work.

jbstack 1 hour ago||
> they’re too slow to work with interactively for many use cases

This just demonstrates how much we already take for granted the LLMs that we have now. If you compare it to what we had before (hand the task off to a junior dev and wait for them to complete the work) then it doesn't seem slow at all.

perching_aix 1 hour ago||
Given the 750 tok/sec GPT 5.6 Sol Ultrafast (via Cerebras), the many-1000 tok/sec Chinese models, and the 15000 tok/sec Taalas HC1, I think we're well on the way towards seeing that solved too. Combine the two, and yeah, wild ride incoming.

What's especially bewildering to me is that translated back to raw bandwidth, even 15000 tok/sec is just like what, 75 KB/s? Extremely meager amounts of data, moving mountains.

It's already kinda funny seeing LLMs throw out effort estimates in wall time terms. It's always some "hours, days, weeks" tier thing, when in reality, it's gone and done in minutes.

cactusplant7374 29 minutes ago||
One of my projects has an estimate of 3,000+ hours. It seems accurate. It has spent months working on it.
perching_aix 18 minutes ago||
Around the clock?
AnotherGoodName 2 hours ago||
I think a big one is robotics. A robot can today fold your laundry. It takes ~10mins per item. Seriously. It takes a long time to process the image find the corner move the claw to the corner of the shirt and attempt to straighten before folding.

Robots right now generally move at glacial speeds. You might have seen robots doing flips in semi controlled environments but watch how slowly they open doors etc. processing time is a major bottleneck.

wongarsu 21 minutes ago||
Sensors are a huge challenge for robotics. We have very precise force-feedback on our joints, pressure and heat (temperature gradient) sensors all over our body, and our hands have a sensor density that allows us to count needle heads and detect the exact grip strength needed by feeling the micro-slippage of objects in our hands. Robots don't have that.

You can do backflips with pretty much just visual sensors for your environment, a good IMU for your spatial orientation, and some feedback on the position of a small number of really beefy joints and the force exerted on them. Folding laundry and opening doors is much more difficult, and trying to compensate with mostly vision requires going slow enough that things have time to move over appreciable distances before you take the next adjustment

Alien1Being 1 hour ago|||
Xiaomi robots do this in double digit seconds.

Still slow compared to humans, but Chinese robots will be as successful as Chinese EVs, phones and solar panels.

infecto 18 minutes ago|||
~1min per shirt in a controlled environment. Better but still far away.
kaashif 1 hour ago|||
Which is to say, they'll be banned in the US.
segmondy 1 hour ago|||
You must not have been paying attention to development with robots, there are many videos of robots moving really fast in "non controlled environments"
infecto 18 minutes ago|||
Most of these videos are still controlled in some manner. We are not yet at the age of throwing a robot in a home and doing n different dynamic tasks.
airstrike 1 hour ago||||
Yes, I think I saw one in a video titled "Robocop"
TheAceOfHearts 1 hour ago|||
Honestly, most of the videos I've seen of robots moving around quickly aren't actually doing anything useful. We've had really impressive tech demos for the past 15 years of robots dancing and jumping around. But I don't want a dancing robot, I want a robot to make me a BLT, wash my dishes, take out the trash, and fold my laundry.

The most recent video which actually impressed me was a demonstration from Gemini Robotics 2, where a robot was shown autonomously removing the bag from a trash can and folding the loops closed in real time.

I don't follow robotics advances closely so it's possible I'm just ignorant, do you know any autonomous robotics demonstrations of useful activities that you would suggest checking out?

andai 1 hour ago|||
Wait til the robots get on Cerebras, it'll set your pants on fire.
LoganDark 1 hour ago||
Only if the fire manages to escape your wallet!
CodingJeebus 1 hour ago|||
Have LLMs improved at being able to process physics-based problems and environments? I remember that issue being discussed around generative gaming a while ago but I hadn't heard much about it recently.
AnotherGoodName 1 hour ago||
Transformers in general are huge but if you say LLM you’re specifically saying the language model transformer. Robots use vision transformers
MichaelNolan 1 hour ago||
100x seems like an underestimate. Even with no model improvements, we should see that sort of reduction. Looking at TSMC’s margins, Nvidia’s margins, and OAI/Anth (alleged) margins on inference, there is a room for a 100x reduction.

Right now all three of those are at abnormally high levels. Competition will come for all three.

andai 1 hour ago||
A year ago I had an aha moment, when I realized that for my purposes, Gemini Flash was not only 9x cheaper, but 3x faster than Gemini Pro, while producing identical output. Who's the best model now!

For a lot of tasks, even small models have saturated them a while ago, and then going cheaper and faster is just pure gains.

For coding I also prefer to do it interactive/realtime, micro-prompting, surgical edits, which the small models can handle just fine.

And then at the top, the real question is consistency. Not "can they do it" but "reliably enough that you don't need to constantly double check everything." (In my experience, not quite there yet, although it's getting way better.)

newAccount2025 1 hour ago||
I’m loving small models. The gemma4 26/31b models have been deeply impressive on weird prose analysis tasks that I am working on. Nova-micro is really stupid but is extremely fast when it’s smart enough to do something. I’m trying to be disciplined about able to evaluate quality vs cost everywhere for real systems built on this stuff. I probably need to get off Bedrock because it’s missing a lot of other little models that might be good competitors.
brotchie 2 hours ago||
There’s still 50-500x cost reduction in “this is only an engineering problem” low hanging fruit from specialized chips to run the models + improved distillation.

Entirely feasible that by 2031, Fable 5 (or greater) intelligence level models will run cool on smart phones, if not sooner.

tgv 1 hour ago||
You're betting on getting getting ridiculously powerful chips to run on batteries in a tiny housing without cooling, while we can't even get enough RAM? It would be a terrible waste of resources. Now we already have TFLOPs wasting in our pockets and backpacks, then we'll have PFLOPs idling, because there's so much time between prompts. Much more efficient to batch it on a server.
kaashif 1 hour ago||
At some point we'll have enough RAM, surely. The incentives to produce more are huge and all the fabs are booked out.

Maybe it'll take 10 years or 20 years. <5 years is not long enough for manufacturing to catch up.

Not much of a comment on the phone stuff but I'd caution against suggesting technology will never be good enough to do X. Maybe it'll be horrendously wasteful but it might happen.

andai 1 hour ago||
I saw a 1B model yesterday that was fine tuned on Fable output. I found that hilarious, but it did actually make all the scores go up.

(Actually talking to it, it was about as coherent as you'd expect, i.e. 3/10)

The floor for "actually usable model" keeps dropping though. (Seems to be about 27B right now?)

cush 40 minutes ago||
It’s way too early to tell the true cost of intelligence. Inference is still heavily subsidized, and training is apparently being funded by a mountain of free money
infecto 17 minutes ago|
How do we know inference is heavily subsidized? Are all these third party Chinese model providers subsidizing the true cost?
vanuatu 58 minutes ago|
I think what a lot of people miss about jevon's paradox is the elasticity of demand of the underlying resource

textiles had jevons paradox, and many more textile workers were employed even when textile machines were being created, until we saturated the demand for cheap clothing in the world and then textile workers were kaput (same for farming, and horses)

software is currently undergoing jevons paradox, but it's very unknown how high the ceiling of demand for software is. web dev might be doomed, but software in general i think is probably limitless

Intelligence is also probably unbounded (atm software and intelligence are very closely tied together). its very possible token spend rides up the curve forever.

More comments...