A former Facebook executive says the intense competition in the AI race will drive companies to think of more ways to dominate other than brute-force spending.
In a new CNBC interview, Chris Kelly, founder of Kelly Investments and ex-Facebook chief privacy officer, says he expects the biggest AI players to pivot toward efficiency rather than simply adding more infrastructure.
“So there’s going to continue to be a war for talent among the biggest players, and there will probably be some new ones who come to the fore. But more than anything else, there’s going to be a drive towards some efficiencies instead of just constantly building more data centers and more GPUs all the time.”
Kelly highlights that the resource demands of training frontier models are becoming impossible to ignore, spanning capital, chips and power.
“The amount that it takes to train a new model is an immense amount of resources in terms of dollars, in terms of GPUs, in terms of power. But I think that there’s going to be a lot of companies that turn hard towards how do we do this more efficiently and effectively.”
Kelly notes that one of the most promising directions is taking inspiration from how humans reason, using the brain’s low-power efficiency as a benchmark for future AI systems.
“One of the most interesting approaches that’s going to be out there is thinking about how the human brain reasons and modeling that better. We run our brains on 20 watts. You don’t need gigawatt power centers to reason. And I think that finding efficiency is gonna be one of the key things that the big AI players look to.”
He also says the drive for efficiency creates a setup where smaller firms are now prime takeover targets.
“I think that some of the bigger players will end up acquiring smaller players that do that breakthrough.”
Just last week, Nvidia grabbed headlines after signing a non-exclusive licensing agreement with Groq for its low-cost AI inference technology.
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