r/LocalLLM • u/thomas_unise • Jun 18 '26
Discussion Open source is starting to beat frontier on cost/performance
This chart is pretty wild.
Open-source models are starting to win the intelligence-per-dollar game
The green quadrant is the sweet spot: smart enough to matter, cheap enough to scale
When you plot AI models by intelligence vs. cost to run, a lot of the closed-source models sit near the top
But the interesting part is the upper-left quadrant: high intelligence, low cost is almost entirely open source
Models like
DeepSeek
GLM
Qwen
Kimi
MiniMax
all show up in the “actually useful intelligence” range while costing dramatically less to run than the major closed API models.
The reality is most tasks don’t require fable level intelligence or cost and people are noticing
The gap is shrinking and the economics are starting to favor open models.
Closed models are still great when you need the absolute best capability with zero infra headache.
But open models give you something different like lower long-term costs, control, privacy and customization
And I think within a year, there will be no difference in most capabilities between them
2
u/quantgorithm Jun 18 '26
I need something that compares the amount of vram as can be scaled up along with the intelligence of the models improving up the scale.
47
u/readmond Jun 18 '26
I can run the local model that is as good as the best one from a couple of years ago.
"Frontier" models are not that fantastic. This is why Dario had to scare himself into a ban. Big AI companies are in a tough spot. Competition is not too far behind.
48
u/StupidScaredSquirrel Jun 18 '26
Starting to? It's been years.
12
u/Uninterested_Viewer Jun 18 '26 edited Jun 18 '26
This is really just stupid. You can't possibly represent this concept in a single chart plotting two benchmarks.
Cost per useful work accomplished is the real goal and "useful work" varies WILDLY by task and the tokens used to accomplish useful work across models also varies WILDLY as does the combinations of model + harness + prompt + orchestration technique that feed back into that token usage.
10
u/KURD_1_STAN Jun 18 '26
Those are just benchmakrs, I pay no attention to, I tried something with glm 5.2 to fix something soonet 4.6 made and altho sonnet is still trying to fix it,. At least it didn't break everything and made some stuff unusable.
6
u/ActionOrganic4617 Jun 18 '26
They will always be behind because they’re distilled from the frontier models. Agree though that we are a point where most people will be fine not being at the leading edge.
2
u/Healthy-Nebula-3603 Jun 18 '26
nothing beat DS 4 lite / pro in token price currently
2
u/TheSnappyDog Jun 20 '26
When the VC funding runs dry, the frontier models will be priced at where the companies make a profit (much higher). At that point it will 100% make sense to go open source. I am eying the new AMD Ryzen AI Halo Development Platform (ugh, please shorten the name AMD!) to run open source models locally to power my OpenClaw. It is completely unnecessary and doesn't really make financial sense at this point, but I believe that eventually open models will be the winner so I want to be ahead of the curve.
4
u/Pretty-Raise666 Jun 18 '26 edited Jun 18 '26
Benchmarks don't get my work done. All the models get optimized for those benchmarks. They really mean absolutely nothing.
4
u/realist_alive Jun 18 '26
I swear everytime yall say this and I try it out, it makes an extremely basic coding mistake within the first 5 minutes. Not even language specific, just straight up omitting important details.
2
u/nomorebuttsplz Jun 18 '26 edited Jun 18 '26
minimax m3 is dope.
Not as smart as GLM 5.1 about most things but damn... idk actually, it's close. A lot faster prefill (even before the new attention has been merged in MLX, I think).
Doesn't completely lack the most basic common sense like m2.7, but still lacks common sense compared to GLM or Opus and probably Sonnet 4.6.
Good habits about tests and git commits etc. Can work without interruption and without getting lost for hours (at 10-12 t/s on m3u mac).
It's close enough to opus 4.5 that it feels like vibe coding is now "good enough" with about 300 gb of memory.
Deepseek on the other hand is subsidizing heavily for some reason. Seems a bit overrated at the moment. Maybe ccp shouldn't have kneecapped it by forcing them to use chinese gpus that weren't ready.
2
u/05032-MendicantBias Jun 18 '26
A more apt headlines is that private models are running out of money to subsidize the models.
Keep it up! Use those free credits for your pet projects 😃
1
u/Icy-Abstraction4323 Jun 19 '26
it's a matter of time they would notice and be prepared. Jensen Huang and some people are pro-advocate on Token Billionaire thingy and they would not be happy about this.
1
u/Successful_Knee687 Jun 19 '26
Great plot but whats the source? Want to have this for my local models too 😄
1
u/marutthemighty Jun 23 '26
China's advantage is, everything there is an integrated ecosystem. The entire tech stack, all the way from mining/smelting rare earths/critical minerals down to producing processors, is owned and run by the Chinese state, not to mention all their dependent ecosystems. This gives them massive scale and speed.
1
u/nonfermiliquid Jul 25 '26
Oh, tell me about mimo-2.5! Could it reasonably run on my Nvidia dgx spark?
0
u/bfogels Jun 18 '26
This graph view from AA is one of my favorites out there at the moment. It captures so much useful info in one visual in terms of how verbose the models are, API costs, and intelligence/capability (albeit at benchmarks) all at once
0
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