/AI4d ago

Martín Casado, a16z general partner, warns open-source AI faces $2 billion training and distillation bottlenecks, drawing developer pushback

Critics argue frontier model training costs under $1 billion.

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martin_casado@martin_casado#470inAI

Can someone explain to me how open source models can keep up if ... - pre-training isn't saturated - it costs $2-4B to train a current gen model - distillation is increasingly hard as access to the most powerful models gets blocked ..

?

12:59 PM · May 30, 2026 · 240.3K Views
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> - it costs $2-4B to train a current gen model

I'd like to see the mafs on that far as I can tell, "current gen models" are at most (90th percentile) ≈6X DeepSeek V4 Pro in M(active) and 10x in D. That's maaaybe $1B. And I mean Mythos, not Opus/5.5, those are 2-3x cheaper.

martin_casado@martin_casado

Can someone explain to me how open source models can keep up if ... - pre-training isn't saturated - it costs $2-4B to train a current gen model - distillation is increasingly hard as access to the most powerful models gets blocked ..

?

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will brown@willccbb

@martin_casado there are two large, capable, and well-resourced entities with clear strategic interests in ensuring open models keep up: China and Nvidia

preventing distillation and capturing market share are in tension. it'll be hard to distill GPT-7-BioChem, easy to distill Default Claude.

martin_casado@martin_casado

Can someone explain to me how open source models can keep up if ... - pre-training isn't saturated - it costs $2-4B to train a current gen model - distillation is increasingly hard as access to the most powerful models gets blocked ..

?

4dViews 11.6KLikes 281Bookmarks 47
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Nathan Lambert@natolambert

The debate on if open or closed models win comes down to if there is disproportionate value to marginally better intelligence.

The believers of this sit across from the open models will be good enough camp.

Closed models will stay slightly smarter. Open models will be cheaper.

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