Throughout 2024 Open Source AI has been slowly catching up with investor-funded AI, but in the first weeks of 2025 that has dramatically accelerated. Now Open Source isn't just catching up, it is arguably better and superior to investor-funded AI.
Restrictions on chip imports seem to be driving Chinese innovation, not slowing them down. Using lesser chips, they've optimized AI to run cheaper and more efficiently, but be just as powerful. Not only that, they've open-sourced that AI.
Where does that leave the hundreds of billions poured into investor-funded AI? Who knows. But they've no product to sell that people can't get elsewhere way cheaper or for free.
This also means AI will become decentralized and democratized. Many thought it would just be in the hands of Big Tech, but the exact opposite scenario is playing out.
What are the economic implications? AI hype is keeping the US stock market afloat - how long can that last?
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Well there you go, you took a jet ski and then complained that it was having difficulty climbing steep inclines in mountains.
Small models like that are not going to "know" much. Their purpose is generally to process whatever information you give them. For example you could use one to quickly and cheaply categorize documents based on their contents, or use one as a natural-language interface you could use to ask it to execute commands on other tools.