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Analyticsindiamag

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AI Scaling Laws Crumble Under Token Pressure

  • Microsoft’s Satya Nadella tackled the AI scaling challenge at Microsoft Ignite.
  • The scaling laws in AI are not physical laws but empirical observations.
  • Efforts in areas such as model architectures, data regimes and system architectures are needed to push innovation.
  • Microsoft is working closely with NVIDIA on scaling test-time computing for OpenAI.
  • 'Tokens per watt plus dollar' is Microsoft's new metric to reflect the efficiency of generating tokens.
  • Data centres are now viewed as a product by NVIDIA rather than just GPUs.
  • Electricity, supply chain and capital are major challenges when it comes to scaling computing.
  • OpenAI plans to partner with TSMC and Broadcom to launch its first in-house AI chip by 2026.
  • Major inference chip makers like Groq, Sambanova and Cerebras have improved performance.
  • NVIDIA is working with its suppliers to cool overheating racks.

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