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APPLE RESEARCH SCIENTIST JUST SHOWED HOW 4 MAC STUDIOS RUN A TRILLION PARAMETER MODEL LOCALLY ZERO COSTS 13:18 she shows the main thing - connect 4 Mac Studios and you get 1TB of shared memory - exactly enough to run a trillion parameter model right on your desk Apple's...

48,615 views • 2 months ago •via X (Twitter)

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Everyone wrote Apple off as the AI loser, but one hardware spec might flip that story upside down (Save this). @jason called Apple a screaming buy on the back of a single chip detail. The rumored M7 Ultra, expected around 2028, is designed to support up to 1.5TB of unified memory, enough to run frontier class trillion parameter AI models locally, with no cloud required. The Street's bear case on Apple is straightforward. Apple has no frontier model of its own, Siri has stumbled for years and the company effectively rents OpenAI's models for its hardest queries. That narrative treats Apple as the one Magnificent Seven name that missed the AI wave entirely but the bull case flips that framing on its head. If frontier AI models keep shrinking and getting cheaper to run, Apple doesn't need the smartest model in the world, it just needs to own the device that model runs on. And unified memory is the mechanism that makes this possible. Unlike traditional systems where the CPU and GPU each need separate memory, Apple's architecture lets the CPU, GPU and Neural Engine draw from one shared pool. A fully specced M7 Ultra could theoretically run something on the scale of a 1.2 trillion parameter model locally and that capability plugs directly into the one advantage Apple has spent over a decade building: privacy. Apple has already shipped Private Cloud Compute, a system designed so even Apple can't access user data processed off device. Apple doubled down on this at WWDC 2026, framing on device privacy as non-negotiable while rivals default to the cloud. If the best AI models get small enough to run on Apple silicon, the moat stops being the model and becomes the hardware it has to sit on. Milk Road Pro remains bullish on Apple and it remains as one of our core positions, if you want the full thesis + our full AI trades, come join us using the link below for just a $1.

Milk Road AI

37,459 views • 1 month ago

Karpathy told Dwarkesh that a 1 billion parameter model, trained on clean data, could hit the intelligence of today's 1.8 trillion parameter frontier. That is a 1,800x compression claim. The math behind it is more defensible than it sounds. When researchers at frontier labs look at random samples from their training corpus, they see stock ticker symbols, broken HTML, forum spam, autogenerated gibberish. Not Wikipedia. Not the Wall Street Journal. The actual pretraining dataset is mostly noise, and the model is burning parameters to vaguely remember all of it. One estimate pegs Llama 3's information compression at 0.07 bits per token. Well-structured English carries around 1.5 bits per token of real information. The trillion-parameter model is holding a roughly 5% resolution image of the internet it trained on. So when a lab ships a 1.8 trillion parameter model, the overwhelming majority of those weights are handling rough memorization. They are compression overhead for a noisy training set, taking up capacity that could be doing reasoning instead. Karpathy's proposal is to separate the two. Build a cognitive core: a small model that contains only the algorithms for reasoning and problem-solving, stripped of encyclopedic memorization. Pair it with external memory the model queries when it needs a fact. A 1 billion parameter reasoner plus retrieval beats a 1.8 trillion parameter model trying to do both. The data already supports this direction. GPT-4o runs at roughly 200 billion parameters and outperforms the original 1.8 trillion GPT-4. Inference costs for GPT-3.5 level performance fell 280x between 2022 and 2024, driven almost entirely by smaller, cleaner, better-architected models. The trend line is pointing where Karpathy says it should. The real implication for anyone tracking the AI trade: data quality is the actual constraint. The companies winning the next phase will be the ones who figured out what to train on, and what to throw away.

Aakash Gupta

508,446 views • 4 months ago

Andrej Karpathy just made one of the most interesting arguments about AI model design that most people are completely missing. His take is that frontier AI models are not too big because the technology is complex and too big because the training data is garbage. When you or I think of the internet, we picture Wall Street Journal articles, Wikipedia entries, serious writing. That is not what a pretraining dataset looks like. When researchers at frontier labs look at random documents from the actual training corpus, it is stock ticker symbols, broken HTML, spam, gibberish. One estimate puts Llama 3's information compression at just 0.07 bits per token meaning the model has only a hazy recollection of most of what it trained on. So we build trillion parameter models not because we need a trillion parameter brain but because we need a trillion-parameter compression engine to squeeze some intelligence out of a firehose of noise. Most of those parameters are doing memory work, not cognitive work. Karpathy's prediction is separate the two entirely. Build a cognitive core, a model that contains only the algorithms for reasoning and problem-solving, stripped of encyclopedic memorization and pair it with external memory that it can query when it needs facts. He thinks a cognitive core trained on high-quality data could hit genuine intelligence at around one billion parameters. For reference, today's flagship models run between 200 billion and 1.8 trillion parameters with most of that weight dedicated to remembering the internet's slop. The trend is already moving his direction. GPT-4o operates at roughly 200 billion parameters and outperforms the original 1.8 trillion-parameter GPT-4. Inference costs for GPT-3.5-level performance dropped 280-fold between 2022 and 2024 driven almost entirely by smaller, cleaner, better-architected models. The real bottleneck in AI right now is not compute but rather data quality.

Milk Road AI

200,545 views • 4 months ago