Dylan Patel, CEO of SemiAnalysis, discusses the business goals and target economic applications driving multi-billion dollar AI infrastructure investments.
“No one is trying to make with these, you know, with these ten billion dollar data centers, they're not trying to make chat models, right? They're not trying to make models that people chat with, just to be clear, right? They're trying to solve things like software engineering and make it automated which is like a trillion dollar plus industry, right?”
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More from Dylan Patel
Opinion
Patel: Most AI models lean left due to Bay Area origins
“Most AI models are made in the Bay Area, so they tend to just be left leaning, right? But also the internet in general is a little bit left leaning because it skews younger than older.”
Dylan PatelApr 23, 2025▶ 19:44Generative AI 101: Tokens, Pre-training, Fine-tuning, Reasoning — With SemiAnalysis CEO Dylan Patel
Insight
Patel: Building cheaper AI requires massive frontier models for synthetic data
“You can't actually make that cheaper model without making the better model, bigger model. So you can generate data to help you make the cheaper model, right?”
Dylan PatelApr 23, 2025▶ 33:21Generative AI 101: Tokens, Pre-training, Fine-tuning, Reasoning — With SemiAnalysis CEO Dylan Patel
AssertionNot checkable as stated
Patel: OpenAI's Orion training run failed to reach GPT-5 performance levels
“There were hopes that Orion could be used for GPT-V but its improvement was, like, not enough to be, like, really a GPT-V. Furthermore, it was trained on the classical method, which is, like which is a ton of pre-training, and then some reinforcement learning …”
Dylan PatelApr 23, 2025▶ 36:12Generative AI 101: Tokens, Pre-training, Fine-tuning, Reasoning — With SemiAnalysis CEO Dylan Patel
Opinion
Patel: Language is a representation for reasoning, not human thought itself
“Language is not actually how our brain thinks. It's just a representation for which it to, you know, reason over.”
Dylan PatelApr 23, 2025▶ 4:58Generative AI 101: Tokens, Pre-training, Fine-tuning, Reasoning — With SemiAnalysis CEO Dylan Patel
Insight
Patel: AI models ingest dangerous data during pre-training for world knowledge
“So you don't want to just filter out everything so that the model doesn't know anything about it but at the same time, you don't want it to output, you know, how to build a bomb so there's like a fine balance here, and that's why pre-training is defined as pre…”
Dylan PatelApr 23, 2025▶ 12:57Generative AI 101: Tokens, Pre-training, Fine-tuning, Reasoning — With SemiAnalysis CEO Dylan Patel
AssertionSupported
Patel: Model inference costs dropped 60x from GPT-4 to DeepSeek-V3
“And likewise, when we look at from GPT-IV to DeepSeq VIII it's fallen roughly 600 X in cost. Right. So we're not quite at that 1200 X, but it has fallen 600 X in cost from 60 dollars to less than you know, to about a dollar. Right. Or to less than a dollar. So…”
Dylan PatelApr 23, 2025▶ 29:14Generative AI 101: Tokens, Pre-training, Fine-tuning, Reasoning — With SemiAnalysis CEO Dylan Patel
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