i dont think the comparison to traditional vc saas is very good

yes, in traditional venture you want cost per marginal user to decrease and leverage your platform at scale

but improving llms shifts the frontier of their capability and unlocks entirely new use cases. so far, every mega training run has resulted in a model that has paid itself off profitably fully loaded. perhaps the TAM of intelligence has no ceiling?

not to say that we shouldnt be investing in efficient models, but the efficiency comes after we create another mega shoggoth that we can make more efficient

you think companies are not focusing on efficiency but in reality they are both almost fully correlated. if you make a model more efficient, you get to make it do more reasoning and we know that the upper limit for reasoning is very very high.

we have real proof - GPT 5.6 Luna is 50% cheaper than 5.5. And this keeps repeating.