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> But I also think the demand for "fast/cheap/good-enough" models is just about to take off. There's a sort of "revelation" I had in ~early '24 when I used a 7B local model with a library called Guidance (initially out of MS, then the team moved) to create a flow where the model would receive pseudocode for tests, first write the tests, and once I approved then started writing code until the tests passed. This was before "thinking" models, and yet using that library I was able to "guide" the model in the required "prompt / instruct" context such that it was working towards completion, and I saw the first things like we see now in the thinking traces "oh, test x doesn't pass because blah, I need to..." and so on. Anyway, the revelation was "even if the models never improve, I'll have years of fun finding out all the ways I can use these things". And, obviously, the models improved a lot since then. But I think that revelation can still be applied, as a sort of "truism". We have, right now, access to things that 10-20 years ago would be considered magic. We are still finding ways of cobbling together systems with glue, duct tape and prayers and find new things they can do. I think the "good-enough" stage has come not just for API models (cheap, fast, etc) but for local as well. Even if slower, even if clunkier, but they are good enough for a set of ever increasing tasks, and what's more it's incredibly fun to work with them.
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Yes. The infancy phase of this technology is represented by the pursuit of making wildly grand, wildly expensive, all-purpose models that somehow discern a user's full accurate intent from a lazy, underdeveloped, vague idea that they ambiguously and poorly express in a couple dozen words. The adolescence will arrive as those outsized and ill-considered ambitions collapse and we instead see a cambrian explosion of restrained but efficient model+harness-tuples that have been distilled, finetuned, and rigged to deliver on narrowly scoped but idiosyncratically-shaped tasks with incredible efficiency and erogonomics.
Yep, I've been having excellent experiences with the models even from the 2023 era. They required a lot of "holding it right" (mostly: being very precise in what went into the context) but their raw coding capabilities were astonishingly good even then. However, back then I was getting the AI to write individual functions or classes or a test suite. I was decomposing the larger task into smaller tasks, delegating some of them to the AI, reviewing the results and composing the codebase from those. I was also essentially the harness. Today the models can write and test and deploy an entire project. In terms of the code quality, I actually don't think today's frontier models would have written it much better than the 2023 models did. So in terms of raw coding capabilities i.e. converting a high-level specification into working code, I think we hit the peak way back in 2024 itself. What has changed is the AI has learned how to do the task I was doing (besides being the "harness"!), which was the mid-to-higher level "engineering" aspects like decomposing a task, specifying it to a reasonable level, reviewing the outputs, and course correcting as needed. I'm not sure if that is something the AI labs explicitly focused on during training (which may be why Meta is having its highly paid engineers do annotation work), or an emergent property of "better reasoning" (which I believe Dario implied in a podcast), or some mix of both. But the fact remains that even the weaker models are more capable than we realize, and many being open weights, are here to stay.
To me, most local models work just fine for anything you can be patient for. If I want something quicker, I will go to a SOTA model via API, but with multiple 3090s, I have never really needed a hosted model for a lot of my experiments. For code, they are great, but for creativity for NPC controllers, they leave something to be desired, but work well enough for testing, so I don't burn tokens until I'm actually playing my games. But nothing one-shots a prototype better than Fable 5. I can have a prototype built in 30 minutes, hooked up to my local LLMs and Claude Code is very good at testing the interactions and even tuning the prompts of the NPCs for better experiences.
Agreed. I've been "guide coding" in my editor (Zed / VSCode) for a while now and it's really enjoyable. DeepSeek v4 flash has been dirt cheap and so fast that my development loop is; - small prompt - review - small prompt - review I build software with the same quality I normally would but it's way faster to produce and I think more about architecture and flows than I do about implementation details. The small diffs let me accept / modify / veto diffs and if the model struggles, I just write it by hand. It prevents compounding defects from leading the model astray (like you see in vibe coding). In some cases vibe coding is useful, like when the complete specification is available (e.g. creating a JavaScript engine that implements the standard) - but anything that requires iterative development sees vibe coding break down pretty quickly (you could argue that is the case for a JavaScript engine). I feel energised by AI assisted coding rather than drained, as it's a force multiplier for my skills and it lets me build more than I could by myself. That said, most of my team vibe codes and reviewing their work is like pulling teeth.
While they are improving rapidly, or as you say even if they don't. The next stage is for hardware companies ( cough Apple cough ) to ship these Local Model ready hardware in their products. It will be interesting to track the improvements of these 7B model over time. There will be a turning point in the next few years where it attract enough consumer attention to create yet another Smartphone and PC super cycle.