Current State and Future Directions of AI: A Dichotomy of Large-Scale Cloud-Based Models and Local Open-Source Systems

Stojancho Tudjarski
5 min readJun 17, 2024

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Long Story Short

In the very soon future: either you will pay for very smart cloud LLMs or use not-so-smart locally hosted SLLMs, or probably both. Now, let’s elaborate…

Introduction

Artificial Intelligence (AI) has witnessed unprecedented growth and innovation over the past decade. Large language models (LLMs) are central to this progress and have demonstrated remarkable capabilities in natural language understanding and generation. This article delves into the current landscape of AI, mainly focusing on the bifurcation between large-scale, cloud-based models developed by major corporations and smaller, open-source models that can be deployed locally. We will explore the implications of these developments for academia and the broader research community, emphasizing the challenges faced by large open-source models.

The Dominance of Large-Scale, Cloud-Based Models

A few key players dominate the forefront of AI innovation: OpenAI, Google, Microsoft, and Anthropic. These organizations have developed highly sophisticated LLMs hosted on powerful cloud infrastructures.

OpenAI

OpenAI’s flagship model, ChatGPT, represents a significant advancement in AI capabilities. Leveraging extensive training on diverse datasets, ChatGPT can perform a wide array of tasks, including but not limited to content creation, language translation, and complex problem-solving. This model is part of the GPT-4 series, which employs a transformer architecture to process and generate human-like text. The model’s ability to understand context and generate coherent responses makes it an invaluable tool for commercial and research applications.

Google

Google’s AI efforts, particularly through its model Bard, have focused on integrating AI with its extensive search and information retrieval systems. Bard, akin to ChatGPT, utilizes transformer-based architectures to provide accurate and contextually relevant information. Google’s extensive computational resources enable continuous improvement and scalability, ensuring that its AI models remain at the cutting edge of technology.

Microsoft

Microsoft has integrated AI into its suite of productivity tools, enhancing applications like Word, Excel, and PowerPoint. Their AI, powered by models similar to those developed by OpenAI, aids in automating routine tasks, providing intelligent suggestions, and enhancing overall productivity. Microsoft democratizes access to advanced AI capabilities by embedding AI within widely used software.

Anthropic

Anthropic is an emerging player in the AI field, focusing on creating safe and interpretable AI systems. Their research prioritizes ethical considerations and the development of AI that can be trusted and understood by users. This approach is critical as AI systems become increasingly integrated into various aspects of society.

The Emergence and Challenges of Smaller, Open-Source Models

Contrasting the proprietary nature of large-scale AI models are smaller, open-source models that offer accessibility and flexibility for researchers and developers. However, there is a significant challenge with larger open-source models like LLama, which have over 30 billion parameters.

EleutherAI and GPT-NeoX

EleutherAI has developed GPT-NeoX, an open-source alternative to models like ChatGPT. While less powerful, GPT-NeoX provides a valuable resource for experimentation and development without the need for extensive computational resources. This model benefits academic research, enabling scholars to explore AI capabilities and applications without significant financial investment.

BERT and Hugging Face Transformers

BERT (Bidirectional Encoder Representations from Transformers), developed by Google, has become a foundational natural language processing (NLP) model. Its open-source nature allows researchers to fine-tune and adapt it for specific tasks. Hugging Face’s Transformers library offers a comprehensive collection of pre-trained models, fostering a collaborative environment where researchers can build and share their AI innovations.

The Dead-End of Large Open-Source Models

While models like LLama, with over 30 billion parameters, showcase the potential of open-source AI, they face a significant roadblock. Hosting such large models on normal-user commodity hardware is impractical due to their immense computational and memory requirements. Dedicated hardware capable of running these models on local client’s hardware is prohibitively expensive, often exceeding the cost of cloud-based solutions like OpenAI’s ChatGPT. This creates a paradox where the theoretical accessibility of open-source models is undermined by practical limitations in deployment.

Implications for Academia

The dichotomy between large-scale, cloud-based AI models and smaller, open-source systems presents unique opportunities and challenges for the academic community.

Opportunities

1. Resource Accessibility: Smaller open-source models like GPT-NeoX and BERT democratize access to advanced AI technologies, enabling more institutions to participate in AI research and development.
2. Collaborative Research: Platforms like Hugging Face foster collaboration, allowing researchers to share models, datasets, and insights, thus accelerating the pace of AI innovation.
3. Educational Tools: Smaller AI models provide practical tools for teaching and learning, offering hands-on experience with cutting-edge technology.

Challenges

1. Computational Limitations: While open-source models are more accessible, they often require significant computational resources for training and fine-tuning, which may be a barrier for some institutions.
2. Ethical Considerations: The deployment of AI systems, both large and small, raises important ethical questions regarding privacy, bias, and accountability. Academic researchers must navigate these issues carefully.
3. Funding and Support: Sustaining open-source AI projects requires funding and community support. Ensuring their long-term viability is critical for maintaining a diverse AI ecosystem.
4. Deployment Costs: The prohibitive costs of running large open-source models like LLama locally necessitate reliance on cloud-based solutions, which can be expensive and limit accessibility for continuous experimentation.

Future Directions

Looking ahead, several trends and developments are likely to shape the AI landscape:

1. Enhanced Collaboration: Greater collaboration between academia and industry can drive forward AI innovation. Shared resources and joint projects can leverage the strengths of both sectors.
2. Focus on Interpretability and Safety: As AI systems become more integrated into society, there will be a growing emphasis on making these systems interpretable and ensuring their safe use.
3. Scalability and Efficiency: Advances in hardware and algorithms will make AI models more efficient, enabling larger models to be run on smaller, more accessible hardware.
4. Interdisciplinary Research: AI’s applications span numerous fields, from healthcare to environmental science. Interdisciplinary research will be crucial in leveraging AI to address complex, real-world problems.

Conclusion

The current state of AI is characterized by a duality of powerful, cloud-based models developed by significant corporations and accessible, open-source models that can be run locally. This landscape offers significant potential for academic research and innovation. By understanding and navigating the opportunities and challenges presented by these divergent paths, the academic community can play a pivotal role in shaping the future of AI.

However, the practical challenges of deploying large open-source models like LLama underscore the necessity for continued investment in hardware and cloud-based solutions. As we move forward, collaboration between academia, industry, and open-source communities will be essential in realizing AI’s full potential and ensuring that it serves as a tool for progress and positive societal impact.

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Stojancho Tudjarski

ML and AI enthusiast, learning new things all the time and looking at how to make something useful with them.