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Trillions of dollars are being spent on building datacenters for inference. Amazon software engineers are inventing bullshit work for AI to inflate their internal usage scores.
I’m no expert, but isn’t there a fatal flaw here? Most of the work LLM inference is used for is essentially busywork that wouldn’t exist in an automated economy. It’s writing emails, it’s code reviews, it’s asking dumb questions, it’s transcribing or summarizing research or zoom meetings. Even in software engineering, a lot of LLM tokens are used in the kind of inference that a hypercompetent solo-coding model with limited or no human oversight just wouldn’t need.
Think of an office with 10 human employees working in, say, payroll, constantly sending each other emails, messages, having meetings, calling and speaking to each other and other people, summarizing documents, liaising with other departments, asking AI question about how to use various accounting tools, or about the company’s employee benefits package. Now say this department is automated. An AI model acts as an agent to use an already-existing software package to do all the payroll work. No emails, calls or meetings - or at least far fewer. The total inference work required goes down. And the existing software package doesn’t use AI (even if it may have been coded with it), because you don’t need AI to compute payroll data once you have sufficiently complex and customized software for your business.
In the same way, if we imagine our automated future, super high intensity / high token usage inference is actually not really universally required in a lot of occupations. It will be for some multimodal work (plumbing, surgery, domestic cleaning in complex physical environments), but for many tasks, one-and-done software coded either by AI or that already exists can just be deployed at low intensity by an agent. The AI that replaces your job might at first do a lot of coding, but as time goes on, the amount of novel inference required will diminish. Eventually, software coded in a one-and-done way by the AI may actually handle almost all the workload, and token usage for generation may be very limited to just some high level agent occasionally relaying instructions or performing oversight.
In this scenario, why would we expect inference workloads to shoot up so dramatically? Much enterprise AI usage is currently “fake” in the sense that it would not be performed in a fully automated environment. It’s a between-times thing.
It is surprising how much can you achieved with good prompt and harnesses nowadays with how little tokens. The problem is that the majority of people using AI are too stupid to be lazy in the proper ways. I think that a tornado is coming. Probably later than anticipated, but the white collars brains are afraid (insert starship troopers movie meme here) - especially the ones who deep down always knew that their intellectual labor is neither extremely intellectual nor much useful. I am already seeing proposals for excise tax on tokens. And I think that the big hyperscalers grossly underestimate how much optimizations are left in the pipeline.
The compute cost on tools is low, agents are becoming quite adept at tool calling - so agents creating their own tools and tool calls is totally expected ... in a way this is what programmers have always done.
There is lots of performance left to be squeezed out of each token. And relatively small hyper focused models also doesn't seem to be getting the attention it deserves.
Strongly agree on this. Deepseek V4 already brought down the output cost per million tokens below $1 (they say it's a promotion, but they keep extending it) for a model that's perfectly good enough for all "normal person" uses. I expect further optimisations will bring this cost down to $0.01 or so per million output tokens (with two more zeros in front for the input cost) within 5 years or so for models that are as capable as the stuff out there today (see how Qwen 3.6 27B today which you can run locally if you have a decent GPU outperforms Opus 4.0 from less than 12 months ago and which used to cost $75 per million output tokens).
For the vast majority of tasks you don't need the smartest model out there, you just need one which is good enough, and once the baseline for "good enough" is established Chinese competition will drive down the marginal price for "good enough" tokens to the point that some companies are going to be left nursing huge losses.
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