Might we see the return of tech small businesses in the era of LLMs?

· Bits and Bobs 4/7/25
  • Might we see the return of tech small businesses in the era of LLMs?
    • In the 80's and 90's there were thousands of tech small businesses.
    • Later, as the cloud phase heated up, the efficiency of scale became more important.
    • Ranking algorithms in particular are necessary to sift through the firehose of content.
    • Historically the best way to do ranking algorithms was sifting social processes; collecting billions of human interactions in the system and using them to drive an emergent sort.
    • This only works with massive amounts of data, which means only the biggest platforms can do it.
    • But LLMs allow human-level judgment available to anyone, and might make ranking with much less input plausible.
      • Perhaps it will still be limited to only the companies with enough momentum to be able to pay the small but non-zero inference costs.

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