Howard: OpenAI compute spending grows exponentially while model utility scales logarithmically
Jeremy Howard · Jeremy Howard on Building 5,000 AI Products with 14 People (Answer AI Deep-Dive) · May 15, 2025 · at 8:20
Jeremy Howard, co-founder of Answer.ai, critiques OpenAI's compute spending strategy and economics during a discussion with Matt Turck on The MAD Podcast.
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“They kept on kind of exponentially increasing the amount they were spending on their models, whilst the Return, you know, the kind of utility of those models was only increasing logarithmically, and you kind of very quickly hit this point where it's like, oh, we made this great model, but basically it's never worth the time and cost to use it.”
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