Performance Effect
Date of Addition
22 March 2025
A phenomenon identified in compute efficiency research where, over time, a given level of compute investment enables increased model performance due to improvements in algorithms, hardware, and training methods.
According to the Arxiv paper "Increased Compute Efficiency and the Diffusion of AI Capabilities," there are two key effects of improving compute efficiency: (1) the performance effect, where technical institutions and AI companies achieve better results with the same compute investment over time; and (2) the access effect, where achieving a specific performance level requires less compute investment as time passes. Together, these effects mean that while AI capabilities become more accessible to smaller players over time, large compute investors can maintain their leading position by pioneering new capabilities.
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