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.Josh Wolfe: Anybody Using DeepSeek App Is 'Absolute Fool' "Anybody using the DeepSeek app is an absolute fool. If you're using DeepSeek on companies like Together Compute, one of Lux's companies, which can get rid of the CCP censorship, then it's probably okay. But remember, the open-source movement is...

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David Sacks says companies are trapped paying OpenAI & Anthropic because they can't figure out how to use open source models "I think enterprise CTOs would like to shift their token consumption to cheaper models for the obvious reason that it would be more efficient. They are seeing compute costs or token costs skyrocket right now, so everyone's trying to figure this out." "You also have the AI sovereignty issue that Alex Karp talked about. They're worried about giving up the secret sauce or the alpha in their business to a frontier lab that may one day be competing with them. "The problem is, I think in most cases, they don't have the technical ability to do it. Coinbase figured out how to do it. DoorDash figured out how to do it. They built a token routing system that allows them to send frontier tasks to frontier models and non frontier tasks to more mundane models. But I don't think your average enterprise has the technical capability to do that." "This is why the share of wallet of closed models, it actually increased. I think that open source went from 19% last year to 11% this year. So open source as a share of enterprise spending is actually decreasing." "I don't think that means usage is decreasing. I think usage is skyrocketing. It also may be the case that because the whole point of using an open model is you just pay for the compute costs, you don't have to pay a lab, so it may be that it's hard to measure that usage in terms of spend." "But nonetheless, anyone who's saying that these closed models are going to lose or are somehow losing, you're just not seeing it in the data."

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Baseten Head of AI Model Training Charlie O'Neill says the future is many specialized LLMs dedicated to specific tasks, with bigger labs deployed on the frontiers of areas like science and math: "People are thinking about intelligence capabilities in the wrong way. People are thinking about intelligence relativistically. They say, 'OK, the open-source gap is like 6 months behind closed-source, and GLM 5.3 is as good as Opus 4.8,' or whatever." "The best way to think about what models can do for you, and for the world, is in an absolute sense." "So for any given task that you want to do with an LLM, there's some intelligence threshold where below that you can't do the task, and above that you have very diminishing returns to more intelligence on the task." "So when you think about it that way, the game of LLMs over the last 5 years has been, 'OK, we have these things we want to do with them. Closed source hits it first... but open-source can eventually do that task. And then for many reasons, once you have the base level of intelligence required to do it, you probably do want to swap to open-source." "It's not really about the [frontier lab] God model being better. Like, if I'm filing a tax return, there is a limit to how much intelligence I need to do that particular thing." "So I think the world is going to look like — frontier closed-source labs are going to continue to push the frontier. You do want to use the most intelligent model. You have very inelastic demand for intelligence when you're doing frontier science or frontier math." "But for a lot of the economically valuable things, it looks a lot like, 'I'm a Cursor, or I'm one of these big companies who are realizing I can't just be a wrapper anymore. I've been through the life cycle of building a product that people love. And I should be using that information to make my model better at the things that I care about, and not at anything else.'"

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