Small AI Models Are Doing the Real Work — Not GPT-5 | The Future Is Local

Everyone’s talking about GPT-5, frontier models, and billion-dollar training runs.
But here’s the part no one wants to admit:

Small AI models are doing 90% of the real work.

This video breaks down a Wall Street Journal piece showing how companies like Meta run their core ad systems on small, efficient models — not the flashy frontier ones. And the economics explain everything.

🧠 What we cover:

• Why Meta uses small models for its entire ad-delivery pipeline
• The massive cost gap: $10–$75 per million tokens vs 10 cents or less
• Why small models can run locally, with more privacy and lower cost
• How this mirrors the evolution of processors in the 90s
• Why the future isn’t “one giant model,” but a fleet of specialised micro-models

This is the direction we’re building toward with sovereign, privacy-first AI:
Local models, personal intelligence, and zero dependence on cloud giants.

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👉 If you’re here for deeper thinking about sovereignty, decentralisation, and the future of intelligence, explore my long-form essay series.

⏱️ Timestamps

0:00 – Intro
0:28 – Large vs Small Models
3:30 – Real-world Cost Comparison
5:33 – Why Economics Favour Small Models
8:35 – The Multi-Model Future
11:25 – Key Takeaways

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💬 What’s your experience with small vs large models?

#AI #SmallLanguageModels #ArtificialIntelligence #LLM #PrivateAI #TechNews #OnDeviceAI #SovereignAI


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On this channel, I explore AI, technology, and the ideas shaping our digital future.
We're building Whisper — a fully private, on-device AI — and Nano Collective, our open-source community focused on decentralised, privacy-preserving intelligence.

Sometimes I talk about Bitcoin, decentralisation, and what sovereignty really means in the age of AI.

If you care about intelligence that works for you, not against you, you’ll find a lot here.

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