You Don’t Need Big GPUs to Do AI Anymore. Here’s Why.

New open-source AI models by H2O.ai are accurate, small, and cheap

Joey Bertschler
DataSeries
3 min readAug 15, 2024

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Photo by Andrey Matveev on Unsplash

For years, advanced AI has been the playground of tech giants and well-funded institutions, with price tags to match. The NVIDIA Tesla H100, a top-tier AI computing chip, costs between $25,000 and $48,000 per unit. Even more modest options like the NVIDIA RTX A6000 hover around $5,000. This hardware barrier has kept cutting-edge AI development out of reach for most individuals and smaller organizations.

But the landscape is shifting, and big AI models with big compute needs are no longer the end-all-be-all.

The shrinking world of AI

A new tiny AI model, H2O.ai’s Danube-3, is challenging long-held assumptions about AI’s computational requirements. While companies like OpenAI build increasingly massive models needing enormous data centers to function, H2O.ai took a different path. They’ve created an AI so compact it runs on a smartphone (and you can download it on the app store), yet it holds its own against much larger systems in complex language tasks.

Danube-3, trained on 6 trillion tokens, is small yet surprisingly capable. It outperforms Apple’s OpenELM-3B-Instruct and matches Microsoft’s Phi3 4B on the 10-shot HellaSwag benchmark, a test of commonsense reasoning. For a model designed to work on everyday devices, this level of performance is remarkable.

This shift towards compact, efficient AI models could democratize the field in unprecedented ways. Suddenly, advanced AI experimentation isn’t limited to those with access to multi-million dollar budgets and teams of specialists. A capable laptop or smartphone will suffice for many tasks.

This accessibility could ignite innovation from unexpected sources. Small startups, independent researchers, and even tech enthusiasts might soon wield AI tools once reserved for industry giants and well-funded academic institutions.

The potential extends beyond just accessibility. Danube-3’s ability to run sophisticated AI tasks on edge devices opens up new avenues for privacy-conscious AI applications. Rather than transmitting sensitive data to remote servers, many operations could be handled directly on a user’s device, keeping personal information local and secure.

Greener AI ahead

The environmental impact of AI is often overlooked, but it’s significant. The massive data centers required to train and run large language models consume huge amounts of electricity. One study showed that “Google’s AI alone could consume as much electricity as a country such as Ireland.”

Compact models like Danube-3 offer a path to more sustainable AI practices. By shifting more AI processing to edge devices, we could substantially reduce the energy demands of AI applications. It’s a step towards aligning AI advancement with environmental responsibility.

While data-center-scale models will continue to push AI’s boundaries, compact models like Danube-3 will bring AI capabilities to a wider range of devices and applications.

The development of efficient, compact AI models marks a shift towards a future where advanced AI isn’t limited to tech giants and well-funded research institutions. It points to a world where sophisticated AI capabilities could become as commonplace and accessible as mobile apps are today. This future may be closer than we anticipated, bringing both exciting possibilities and new challenges to navigate.

As AI continues to miniaturize, we’ll see a transformation in how we use this technology in our daily lives. The era of AI requiring massive GPUs and specialized hardware may be drawing to a close, opening doors to a more inclusive and innovative AI landscape.

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Joey Bertschler
DataSeries

Data science, AI and data visualization with code and no-code tools.