{"id":183684,"date":"2025-04-14T05:38:09","date_gmt":"2025-04-14T05:38:09","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/internet-business\/the-three-ai-computing-paradigms\/"},"modified":"2025-04-14T05:38:09","modified_gmt":"2025-04-14T05:38:09","slug":"the-three-ai-computing-paradigms","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=183684","title":{"rendered":"The Three AI Computing Paradigms"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div dir=\"auto\">\n<p><span>Today\u2019s AI industry is getting shaped by <\/span><strong><a href=\"https:\/\/businessengineer.ai\/p\/the-three-scaling-laws-of-ai\" rel=\"\">three underlying scaling paradigms.<\/a><\/strong><span> <\/span><\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png\" width=\"1286\" height=\"922\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:922,&quot;width&quot;:1286,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1456w\" sizes=\"100vw\" fetchpriority=\"high\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p><strong><a href=\"https:\/\/businessengineer.ai\/p\/the-three-scaling-laws-of-ai\" rel=\"\">In the three AI scaling laws,<\/a><\/strong><span> I\u2019ve highlighted how AI is scaling through: <\/span><\/p>\n<ul>\n<li>\n<p><strong>Pre-training scaling<\/strong><span> refers to the traditional method of scaling large language models (LLMs) by increasing data, computing power, and refining attention-based algorithms. This scaling law has driven AI progress over the past decade, but its improvements have started to plateau.<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Post-training scaling<\/strong><span> involves fine-tuning and optimizing pre-trained models through additional training techniques, including reinforcement learning and architectural enhancements. This enables AI to go beyond simple pattern recognition and start reasoning more effectively.<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Test-Time Scaling (Long Thinking)<\/strong><span> \u2013 This is the newest phase of scaling, where AI inference is enhanced through iterative multi-step reasoning. Instead of relying on a single-shot response, AI models perform multiple reasoning steps at inference time, significantly improving their ability to tackle complex problems.<\/span><\/p>\n<\/li>\n<\/ul>\n<p>Each scaling paradigm is driving AI development up and to the right.  <\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png\" width=\"1456\" height=\"831\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/f555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:831,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:458957,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https:\/\/businessengineer.ai\/i\/158177659?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" title=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff555109e-1ffd-4ff3-a63e-1a2753c80f87_2308x1318.png 1456w\" sizes=\"100vw\" fetchpriority=\"high\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p>However, this also creates an industry around each scaling paradigm with different computing (GPU) requirements. <\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1456w\" sizes=\"100vw\"\/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png\" width=\"1286\" height=\"922\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:922,&quot;width&quot;:1286,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F500b883c-b1b4-4400-adf4-6c632209cae0_1286x922.png 1456w\" sizes=\"auto, 100vw\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p>The transition across these three scaling paradigms isn&#8217;t just a theoretical evolution\u2014it requires fundamentally different computing architectures. <\/p>\n<p>As AI systems advance through these paradigms, their computational requirements evolve dramatically.<\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png\" width=\"1456\" height=\"922\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/a532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:922,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:334215,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/businessengineer.ai\/i\/160559069?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa532ce88-ca3f-4349-9636-2ed1c512d2b2_2132x1350.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p>The pre-training phase demands the most intense computational resources:<\/p>\n<ul>\n<li>\n<p><strong>High computational demand<\/strong><span>: Requires massive parallel processing capabilities<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Dense GPU clustering<\/strong><span>: GPUs must be tightly interconnected with high-bandwidth connections<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Extensive VRAM<\/strong><span>: Typically 16 GB+ per GPU to handle large models and datasets<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Optimized libraries<\/strong><span>: Reliance on CUDA and specialized deep learning libraries<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Major bandwidth needs<\/strong><span>: Moving enormous amounts of data between memory and processing units<\/span><\/p>\n<\/li>\n<\/ul>\n<p>Organizations like OpenAI and Google have invested in supercomputer-level infrastructure with thousands of interconnected GPUs to handle this phase.<\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png\" width=\"1266\" height=\"832\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:832,&quot;width&quot;:1266,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:183996,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/businessengineer.ai\/i\/160559069?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4723a6e3-fd4b-44ea-a1c6-573f98176fb2_1266x832.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p>As we move to the fine-tuning and reasoning enhancement stage, the computing requirements shift:<\/p>\n<ul>\n<li>\n<p><strong>Moderate computational needs<\/strong><span>: Less intensive than pre-training but still substantial<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Distributed GPU processing<\/strong><span>: More flexible GPU arrangements with fewer tight interconnections<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Moderate VRAM<\/strong><span>: Typically 8-16GB per GPU, allowing for more accessibility<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Flexible batch sizes<\/strong><span>: Smaller datasets enable more efficient processing patterns<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Balance of training &amp; inference<\/strong><span>: Systems must handle both aspects effectively<\/span><\/p>\n<\/li>\n<\/ul>\n<p>This represents our current state, in which companies are building more distributed systems to handle continued training and increase inference loads.<\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png\" width=\"1456\" height=\"957\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/afad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:957,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:356948,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/businessengineer.ai\/i\/160559069?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fafad3e5c-69b8-41bc-a280-89686a36a1eb_2056x1352.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p>The future of AI computing for deep reasoning will leverage more diverse hardware:<\/p>\n<ul>\n<li>\n<p><strong>Lower computational load<\/strong><span>: Individual operations require less raw computing power<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Specialized accelerators<\/strong><span>: Purpose-built hardware like TPUs, NPUs, and custom ASICs<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Minimal VRAM<\/strong><span>: Often, 4-8GB is sufficient for inference tasks<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Latency optimization<\/strong><span>: Focus on quick response times rather than massive throughput<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Power efficiency<\/strong><span>: Critical for deploying AI at scale in various environments<\/span><\/p>\n<\/li>\n<\/ul>\n<p>This evolution explains why many hyperscalers are reorganizing their companies around AI. <\/p>\n<p>For instance, AWS CEO Matt Garman recently stated that Agentic AI applied to e-commerce could be &#8220;the next multibillion-dollar business for AWS.&#8221; <\/p>\n<p>Similarly, OpenAI projects that one-third of its 2025 revenue will come from SoftBank&#8217;s spending on Agentic AI tools.<\/p>\n<p>This computing infrastructure is enabling the following shift. <\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png\" width=\"1456\" height=\"753\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/abe07577-e523-492a-9a5b-2357086749bf_2852x1474.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:753,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" title=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe07577-e523-492a-9a5b-2357086749bf_2852x1474.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<ul>\n<li>\n<p><strong>Human-in-the-Loop (Past)<\/strong><span>: Humans operate AI tools step-by-step; modest productivity gains<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Human-Looped-in (Present)<\/strong><span>: AI handles many steps; humans guide and refine; 2\u20135x productivity gains<\/span><\/p>\n<\/li>\n<li>\n<p><strong>Agentic AI (Future)<\/strong><span>: AI autonomously plans, executes, and adapts with minimal human input; 10\u2013100x productivity multipliers<\/span><\/p>\n<\/li>\n<\/ul>\n<p>This represents a fundamental shift in the AI paradigm\u2014from systems that require continuous human guidance to systems that operate autonomously and only engage humans when necessary.<\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png\" width=\"1456\" height=\"847\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/b25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:847,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:348102,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:&quot;&quot;,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/businessengineer.ai\/i\/157730714?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" title=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb25bf6a6-f5f2-4b66-9015-5cc7601eb5e6_2476x1440.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p><span>The frontier of AI development is moving toward <\/span><strong><a href=\"https:\/\/businessengineer.ai\/p\/the-three-scaling-laws-of-ai\" rel=\"\">a unified vision<\/a><\/strong><span> where we won&#8217;t necessarily have separate System 1-like or System 2-like models. <\/span><\/p>\n<p>Instead, we&#8217;ll have integrated systems that tap into fast and slow thinking capabilities.<\/p>\n<p>This unified approach aims to:<\/p>\n<ul>\n<li>\n<p>Leverage the strengths of both fast and slow thinking systems<\/p>\n<\/li>\n<li>\n<p>Provide more comprehensive intelligence capabilities<\/p>\n<\/li>\n<li>\n<p>Enable seamless transitions between quick responses and deep reasoning<\/p>\n<\/li>\n<li>\n<p>Support more natural human-AI collaboration<\/p>\n<\/li>\n<\/ul>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 is-viewable-img\" target=\"_blank\" href=\"https:\/\/substackcdn.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png\" width=\"1288\" height=\"782\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:782,&quot;width&quot;:1288,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:201469,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/businessengineer.ai\/i\/160559069?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1fb24cd7-4f67-4e3d-aa5d-3fa115e1de99_1288x782.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<p><span>This technological evolution is driving profound changes in <\/span><strong><a href=\"https:\/\/businessengineer.ai\/p\/ai-native-business-models?utm_source=publication-search\" rel=\"\">AI business models.<\/a><\/strong><span> Traditional software models rely on license, subscription, or usage-based fees. <\/span><\/p>\n<p>However, AI-first companies are shifting toward outcome-based payment structures:<\/p>\n<ul>\n<li>\n<p>Companies pay only for measurable results rather than time or usage<\/p>\n<\/li>\n<li>\n<p>Services align directly with business success metrics<\/p>\n<\/li>\n<li>\n<p>Enterprise AI sales transform from software contracts to AI-driven business architecture<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li>\n<p><strong>Pre-Training: High-Density GPU Clusters<\/strong><\/p>\n<ul>\n<li>\n<p>Extreme compute demands<\/p>\n<\/li>\n<li>\n<p>Requires tightly coupled GPU clusters, high VRAM, and massive bandwidth<\/p>\n<\/li>\n<li>\n<p>Infrastructure investments by OpenAI, Google, etc.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p><strong>Post-Training: Distributed GPU Systems<\/strong><\/p>\n<ul>\n<li>\n<p>Moderate compute intensity<\/p>\n<\/li>\n<li>\n<p>Flexible distributed architectures<\/p>\n<\/li>\n<li>\n<p>Balanced needs for training and inference<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p><strong>Test-Time: Specialized Inference Accelerators<\/strong><\/p>\n<ul>\n<li>\n<p>Lower per-operation compute demand<\/p>\n<\/li>\n<li>\n<p>Emphasis on latency and power efficiency<\/p>\n<\/li>\n<li>\n<p>Uses specialized chips (TPUs, NPUs, ASICs)<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>\n<p>Shift from traditional software pricing (license, subscription, usage) to outcome-based models<\/p>\n<\/li>\n<li>\n<p>Enterprises pay based on measurable results<\/p>\n<\/li>\n<li>\n<p>AI becomes integrated into business architecture, not just software tooling<\/p>\n<\/li>\n<li>\n<p>Reflects a deeper alignment between AI services and business value<\/p>\n<\/li>\n<\/ul>\n<p><strong>With massive <\/strong><span>\u2665\ufe0f <\/span><strong>Gennaro Cuofano, The Business Engineer<\/strong><\/p>\n<p><em>This is part of an Enterprise AI series to tackle many of the day-to-day challenges you might face as a professional, executive, founder, or investor in the current AI landscape.<\/em><\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2\" target=\"_blank\" href=\"https:\/\/businessengineer.ai\/subscribe\" data-component-name=\"Image2ToDOM\" rel=\"\"><\/p>\n<div class=\"image2-inset\"><picture><source type=\"image\/webp\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 1456w\" sizes=\"100vw\"\/><img decoding=\"async\" src=\"https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png\" width=\"1418\" height=\"158\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:158,&quot;width&quot;:1418,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:25576,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:&quot;&quot;,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:&quot;https:\/\/businessengineer.ai\/subscribe&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null}\" class=\"sizing-normal\" alt=\"\" title=\"\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 424w, https:\/\/substackcdn.com\/image\/fetch\/w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 848w, https:\/\/substackcdn.com\/image\/fetch\/w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F324a5102-e0c3-429a-921a-83f4437cd3c6_1418x158.png 1456w\" sizes=\"auto, 100vw\" loading=\"lazy\"\/><\/picture><\/div>\n<p><\/a><\/figure>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Today\u2019s AI industry is getting shaped by three underlying scaling paradigms. In the three AI scaling laws, I\u2019ve highlighted how AI is scaling through: Pre-training scaling refers to the traditional method of scaling large language models (LLMs) by increasing data, computing power, and refining attention-based algorithms. This scaling law has driven AI progress over the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":183685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[95],"tags":[12772,72446],"dealstore":[],"offerexpiration":[],"class_list":["post-183684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internet-business","tag-computing","tag-paradigms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Three AI Computing Paradigms - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=183684\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Three AI Computing Paradigms - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Today\u2019s AI industry is getting shaped by three underlying scaling paradigms. 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In the three AI scaling laws, I\u2019ve highlighted how AI is scaling through: Pre-training scaling refers to the traditional method of scaling large language models (LLMs) by increasing data, computing power, and refining attention-based algorithms. 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