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"This is terrible for US tech companies"

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Reality

• Explanation: No this is actually a huge win for some of the US tech companies in the long run. For example:
  • Amazon: AWS struggled to build their own quality model, but that doesn't matter now since they can serve high-quality open source models at lower costs.
  • Apple: They can leverage their Apple Silicon advantages for something called edge inference.
  • Meta: The biggest winner of all. Every aspect of Meta's business benefits from AI, and cheaper inference means they can monetize their products more effectively.
• Inference: Basically it’s when the AI takes what it learned during the training phase, and applies to a new situation.
• Analogy: Just as cheaper smartphones enabled companies like Uber and Instagram to reach billions of users, cheaper AI could enable new products and services, and US tech companies are in the best position to capitalize on this opportunity.