On Tuesday, November 26, Anton Korinek joined Markus’ Academy for a conversation on AI Scaling Laws and Market Structure. Anton Korinek is a Professor of Economics at the University of Virginia and a Visiting Fellow at Brookings.
The effective computing power employed to train AI models is growing by a factor of 10x per year. Investing has been enabled by AI’s scaling laws, whereby performance improves predictably from additional computing power
There are concerns that AI models are hitting a “data wall,” but further model improvements could come from synthetic data, more efficient training algorithms, and scaling outside of the training stage
The LLM market is highly competitive, but high training costs, network effects, and vertical integration between LLM developers and chips manufacturers raise concerns about future market concentration