𝗣𝗿𝗲𝘁𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗜𝘀 𝗗𝗲𝗮𝗱 𝗙𝗼𝗿 𝗠𝗼𝘀𝘁 𝗟𝗮𝗯𝘀

𝗣𝗿𝗲𝘁𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗜𝘀 𝗗𝗲𝗮𝗱 𝗙𝗼𝗿 𝗠𝗼𝘀𝘁 𝗟𝗮𝗯𝘀

Pretraining large language models is no longer a viable strategy for most companies.

SemiAnalysis reports that only frontier labs like OpenAI, Google DeepMind, and Anthropic can afford the massive costs. These labs spend tens of millions of dollars on single training runs.

Many startups and enterprises suffer from Pretrainitis. This term describes teams that chase pretraining to show impact or get promotions. It is often a waste of money.

The math is simple. Training models like Llama 3.1 405B costs over $60 million in compute. Most companies find it cheaper to use APIs.

Stop chasing vanity projects. Focus on these areas for better returns:

• Prompt engineering • Fine-tuning existing frontier models • Building applications on top of proven tech

Investors now prefer startups that build useful apps instead of those that try to build their own models from scratch. If your only advantage is a model you trained yourself, your business is at risk.

Watch how companies spend their AI budgets in 2026. They will likely shift money away from training and toward API services.

Source: https://dev.to/gentic_news/semianalysis-pretraining-dead-for-all-but-frontier-labs-29a5

Optional learning community: https://t.me/GyaanSetuAi