Luis Garicano 🇪🇺🇺🇦 @lugaricano@respublicae.eu

And you can use better data!!!

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194426623967232

The cost of fine tuning an existing model with LoRA is $100

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194423797026816

2) No scale advantage (this is key) since finetuning a model with cheap hardware (through "LoRA") dominates training from scratch a gigantic model (which would be the advantage of Google or OpenAI).

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194420294774784

This is particularly the case after Meta's model *with the weights* was leaked.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194417488785415

The argument in the blog post is brutally simple and extends the above point:
1) No technology advantage: intellectual property is impossible to protect, as the knowledge is in the head of the researchers, who are leaving Google and spreading the knowledge around.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194414628270081

There was an excellent New Yorker article on Whisper (transcription software) which suggested there are no barriers. The model was fine tuned and ported to a phone app in no time. https://www.newyorker.com/tech/annals-of-technology/whispers-of-ais-modular-future

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194411960684544

To answer the question requires answering: what are the barriers to entry protecting the incumbents? What can their competitive advantages be?

If there are huge barriers, then the winner (Google in search) takes it all in AI, like Google did in search or MSFT in Office.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194409578307584

The question of whether one-three players dominate the industry (like Operating Systems or Search) or it is perfectly competitive is hugely important:
1) For consumer welfare: more competition is better.
2) For control of direction/ethics: more competition makes it harder.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194407003009024

🚨Stunning document, leaked today supposedly from GOOGLE, on whether there is a "moat" (Barrier to entry) in the LLM space.
The author argues neither Google nor OpenAI have a moat, and open source wins. Thread with critical comment at end:
https://www.semianalysis.com/p/google-we-have-no-moat-and-neither

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654194403509149696

Clarification: I mean in the context of the photo-shoot. Obviously everyday hair stylists will always be needed- just not in photo-shoots.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654142813305556992

Models, photographers, fashion designers, stylists, hair stylists, creative directors... Not clear if those jobs can survive not just the tech of the future, but today's tech.
RT @emollick: The new version of Midjourney that released yesterday shows how far AI has come in making commerical-level images from text alone

Here is what you get for "modern outfits inspired by Van Gogh/ Basquiat/ Monet/ Rothko, fashion photoshoot" Each one is the first try, no revision…

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654141825832067076

Excellent OpEd by Amit Seru @StanfordGSB on the new banking crisis. The deposit funding model is broken. We need to significantly increase the reliance of banks on equity. "It is time to move to banking without subsidised deposits " https://on.ft.com/3paPXgT via @FT

🐦🔗: https://n.respublicae.eu/lugaricano/status/1654106093084196865

RT @nberpubs: A study of the effects of minimum wages increases on poverty reduction finds a 10% increase in the minimum wage is associated with a statistically insignificant 0.17% increase in long-term poverty, from Burkhauser, @Drew_McNichols and @SDSUCHEPS https://www.nber.org/papers/w31182 https://t.co/QKkdK2FFHf

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653889977414225920

This is ridiculous. This IMF program is enabling a catastrophic government and making it hard for Argentinian citizens to learn (once and for all) that peronism, as all populism, is poison for prosperity.
RT @EMPosts: SCOOP: The Biden administration would support speeding up disbursements from Argentina’s $44 billion program with the IMF, if the nation’s authorities can successfully negotiate a new schedule, according to US officials familiar with the matter.

htt…

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653884373819883528

Excellent interview with @MarkusEconomist , always reliably a voice of sanity in the middle of too many fashion driven voices. Very much in agreement on the risk of financial dominance, particularly in a day like today. Google Translate version: https://www.nzz.ch/wirtschaft/der-kampf-zwischen-den-zentralbanken-und-regierungen-wird-sich-verschaerfen-prognostiziert-der-oekonom-markus-brunnermeier-ld.1734589?_x_tr_hl=en-US&_x_tr_pto=wapp&mktcval=twpost_2023-05-02&_x_tr_tl=en&mktcid=smch&_x_tr_sl=fr

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653871257568555009

The new capabilities of ChatGPT are stunning. This is hard to believe. Particularly the Data analysis.
RT @rezkhere: ChatGPT just dropped their most powerful tool yet 🤯

It's called the Code Interpreter.

From creating charts to basic video editing to converting files, it does it all.

Here are some of the craziest things it is capable of 🧵 https://t.co/F3ALb8qXY8

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653806242064916480

RT @fwred: ...although QT is not yet obvious in level terms.😅

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653804474274840576

On Friday we honor and say goodbye to Lester Telser, a pIllar of @uchicago economics department, a member of the faculty (and coming in to the office everyday) since 1958.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653793439115538432

How markets use "local knowledge" in ways that central planners cannot (Hayek 1945) beautifully summarized in a tweet.
ht @AlecStapp
RT @thejb_stan: @NathanJRobinson Hey man, how much of this scarce resource do you need?

“All of it”

Damn… that’s what everyone else said too

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653790366288723968

@HannoLustig I think we are making it way too easy to free ride. When e.g. a Caribean island has a business model which is explicitly free riding by encouraging tax shifting, the OCDE countries must be able to react by cutting off those countries from trade and finance.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1653457639576305665