Frontier AI model companies are seeing declining returns on compute and power investment wrt incremental model capabilities. It's not that models aren't improving, but that it isn't keeping pace with the associated time and cost.

An FT piece argues this is analogous to what's happening with quant funds, creating a convergence of the two labs, to the point that one may eat the other.

https://giftarticle.ft.com/giftarticle/actions/redeem/900eba7c-f4ae-492f-bbe3-1e4f15a1e5f6