When H100 compute costs $20 per hour, a weaker, less efficient model wastes money by using more tokens to achieve the same result.

“This is the Alkin-Allen effect in economics,”

“and what it's basically saying is that if it costs $20 an hour to rent an H100,”

“then it would be extremely stupid to use a weaker,”

“less efficient model because it's going to burn more tokens on your expensive compute to get the exact same result.”